EMU Inflation Reach 4%
Today, Eurostat issued a preliminary estimate of Euro area price inflation in June. It rose to a new all time high of 4%, up from the previous all time high of 3.7%. Compare these numbers to the supposed target of 2%.
This will put further pressure on the ECB to raise interest rates in addition to the already signaled hike at the next meeting, especially if as I expect, inflation rise further in July and August. And while M2 money supply growth slowed somewhat in May to 10.1%, from 10.4% in April, it remains at a level which is certainly high enough to fuel more future price inflation.
This will put further pressure on the ECB to raise interest rates in addition to the already signaled hike at the next meeting, especially if as I expect, inflation rise further in July and August. And while M2 money supply growth slowed somewhat in May to 10.1%, from 10.4% in April, it remains at a level which is certainly high enough to fuel more future price inflation.
posted by stefankarlsson at 2:50 PM
0 Comments:
Post a Comment
<< Home