Inflation in Europe is rising rapidly: Eurozone Manufacturing PMI Input Prices spiked to 80 points in May, the highest since May 2022. This also marks the largest monthly increase in costs for firms over the last 4 years. Furthermore, PMI Output Prices surged to 62 points, the highest in 3.5 years. The rate companies are increasing the prices they charge for goods they produce has surged +12 points, or +24%, since the start of 2026. This surge has been primarily driven by rising energy and raw material costs. Meanwhile, supply chain delays are up to the highest level since the pandemic supply squeeze of 2022, adding further pressure on prices. As a result, factories are forced to pass higher costs on to customers, which will push inflation even higher over the next few months. Price pressures across Europe are accelerating.(The Kobeissi Letter)