Inflation in the Euro Area 2011 is currently at 2.4 percent. So calculated, the European Statistical Office Eurostat expect significantly higher inflation than the inflation forecast of the analysts did. They had forecast a rise in consumer prices of +2.2 percent. The target of the European Central Bank (ECB) for the average inflation rate is just under two percent.
benefited mainly the foreign exchange market exchange rate of the euro by the soaring inflation. Sun climbed € courses during the day of 1.3570 to $ 1.3738. On Friday, the European single currency was in the context of Egypt-crisis and risk aversion in a few hours from 1.3745 to 1.3582 U.S. dollars fell back.
The resurgence of the week beginning shows how sensitive the euro dollar exchange rate to a possible change in monetary policy response by central banks. If the inflation in the euro zone does not come down, then the ECB will have to act sooner than the prime rate has been viewed by most analysts predicted.
Even the central bankers expect the average annual inflation rate of +1.8 percent this year. However, this inflation forecast seems a little far used in the context of the attractive commodity prices. Added to collective bargaining come with higher wage settlements in the Federal Republic of Germany and a rising capacity utilization.
a glimmer of hope on inflation Forecast of the ECB provided the money supply growth m3. This reduces the money supply in the euro area of +2.1 to +1.7 percent in December 2010. This should result in a dampening effect on the current inflation.
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