Friday, September 30, 2011

Inflation Surges in The Eurozone

Bad news for those countries wishing to print more money. Eurozone inflation has risen sharply and  unexpectedly to 3%, a three-year high of 3 per cent.

In addition, it will be very difficult for the ECB to cut interest rates now.

In England, Economist Spencer Dale, one of the more hawkish members of the Bank of England’s interest rate setting Monetary Policy Committee, told the Daily Mail   that he expects inflation to rise to 5% from its current level of 4.5%.

The Bank’s target was 2%.

Read more:

The surprise rise in annual inflation strengthened the case against an ECB interest rate cut at its meeting next week, although the euro’s monetary guardian is expected to press ahead with measures to provide extra liquidity to the eurozone banking system.

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