Wednesday, data revealed rising inflationary pressures in France and Spain, while in the UK, jobless claims rose for the fourth straight month.
Eurozone
Annual inflation in France picked up in May after dropping temporarily in April due to rise in food and oil prices. The latest report from the statistical office INSEE showed Wednesday that the rate of annual inflation increased to 3.3% in May from 3% in April, in line with consensus forecast. Compared to April, consumer prices for all households rose 0.5%, following 0.3% growth in April. According to the statistical office, the rising of the overall index resulted mainly from higher energy prices
The German Chancellor Angela Merkel told Financial Times that Europe should form new rules for financial markets, as the Anglo-Saxon model of regulation was a failure. Merkel's statement came ahead of the Group of Eight summit scheduled in July. The summit is expected to discuss new regulation, that the largely "Anglo-Saxon" organization of financial markets undervalued the growing weight and importance of the Eurozone.
Elsewhere in the 15-nation economy, inflationary pressures rose less than expected in Spain. The statistical office INE reported that Spanish Consumer Price Index, or CPI, grew at a slower pace of 4.6% year-on-year in May, smaller than economists' forecast of 4.7%. However, the index rose faster than 4.2% in April. Meanwhile, the Harmonized Index of Consumer Prices, or HICP, rose 4.7% year-on-year, in line with consensus.
Rest of Europe
In the UK, the Office for National Statistics, or ONS released the latest labor market data. UK's claimant count rate stood at 2.5% of the workforce in May, same as in April. The rate came in line with economists' expectations. Claimant count increased for the fourth month in a row. The number of people claiming Jobseeker's Allowance benefit was 819,300. The number increased 9,000 from April 2008, but down 58,100 annually. Economists were looking for an increase of 8,000 for the month of May.
The unemployment rate rose 0.1 percentage point to 5.3% in three months to April. The unemployment level was 1.64 million, up 38,000 over the previous three months. Average earnings excluding bonuses showed an annual growth of 3.9% in three months to April, while earnings, including bonuses were up 3.8%.
Separately, the ONS reported that UK's visible trade deficit widened to GBP7.6 billion in April from March's revised deficit of GBP7.1 billion, the Office for National Statistics reported Wednesday. Economists had expected a deficit of GBP7.3 billion.
Meanwhile, the National Institute of Economic and Social Research said economic growth in the UK continued to slow, expanding by only an estimated 0.2% in May, down from the 0.4% increase in April. The think-tank however says it unlikely that overall output will be down for the year. Official data for the UK GDP will not be out until July. Consumer confidence in the UK was at an all-time low in May, with more than one third of participants voicing serious concerns about the economy.
The Hungarian statistical office said annual inflation accelerated to 7% in May from 6.6% recorded in April due to significant rise in food prices. Economists had expected annual inflation to increase slightly to 6.7%. The current rate is the highest since January 2008, when the rate of inflation stood at 7.1%. Meanwhile, the seasonally adjusted core inflation was 5.9% in May. On a monthly basis, the consumer price index, rose 1.1%, quicker than 0.3% rise seen in April. The Harmonized Index of Consumer Prices, or HICP, rose 0.9% month-on-month and 6.9% year-on-year.
Czech industrial output rose 12.2% year-on-year in April, much faster than 8.5% expected, the Czech Statistical Office announced. The year-on-year growth of industrial production followed its fall of 1.9% in March. On a monthly basis, seasonally adjusted industrial production climbed 7.1%.
Monthly inflation in May came in at 0.3%, slightly higher than 0.2% reported in April, the Statistical Office of the Slovak Republic said. Annual growth in consumer prices was 4.6%, higher than 4.3% in April. Consumer price inflation stood above the 4.5% expected.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.