Inflation Eurozone November 2021

A sign indicating an entry in the German term “2G” only, which refers to people who have been vaccinated against or recovered from the coronavirus.

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NS EUR Zone inflation rose to a record high in November, preliminary data showed Tuesday, prompting further questions about what. European Central Bank Next, we will implement the monetary policy.

Headline inflation for the month was 4.9% compared to the same month last year. This was above Reuters’ consensus forecast of 4.5% and above October’s 4.1%. This number was the highest ever in 25 years when the data was edited.

Rising energy prices have contributed most to the latest inflation measurements. Energy is on track for the highest annual price increase, from 23.7% in October to 27.4% in November, according to Eurostat, the European Census Bureau.

Data is provided when policy makers are waiting for more data on new data COVID-19 Omicron, the first subspecies reported in southern Africa last week.

The travel ban, triggered by the new variant, raises concerns about how the economy can suffer. Experts claim that society is better prepared to deal with the virus compared to the first Covid blockade, Market player It was on the edge with the prospect of further restrictions.


Nevertheless, consumer prices have risen again in the euro area due to rising energy costs and supply chain problems.

In Germany, a country historically afraid of high inflation, inflation is High price for the first time in 29 years In November. Measured by the Harmony Index of the Consumer Price Index, it increased by 6% from a year ago.

The trend is the same FranceInflation reached 3.4% in November, the highest since 2008.

The question for the future is how the ECB squares measurements of high inflation with uncertainty about pandemics.

ECB Deputy Governor Luis de Guindos said last week that the central bank is still planning to end its emergency bond purchase program in March. However, market players want to know how central banks adjust other tools.

Jack Allen Reynolds, Senior European Economist at Capital Economics, said in an email to clients, “Omicron variants have further increased the level of uncertainty, but so far the impact on inflation is significant. It seems small. “

Meanwhile, Rupert Thompson, chief investment officer at Wealth Manager Kingswood, said the latest figures are likely to require the ECB to reduce monetary stimulus.

“Eurozone inflation appears to be well above the ECB’s 2% target for most of next year. These figures further justify central banks’ continued quantitative easing. It will be difficult. [quantitative easing] Implement the program and postpone rate hikes by 2023. “

In addition, Charles Hepworth, Investment Director at GAM Investments, said: The argument that it will soon decline. “

Inflation Eurozone November 2021

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