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Inflation exceeds ECB target for the first time since 2018

Inflation in the euro area rose to 2% in May, surpassing the European Central Bank’s target for the first time in more than two years.

Energy prices have risen 13.1% over the past year, slightly above expectations for the CPI in 19 single-currency regions, pushing them to their highest levels since October 2018, according to the report. It was a factor. Eurostat..

The ECB Board met on June 10 to finance including the recently accelerated pace of bond purchases in response to signs of rising economic activity and prices as the Covid-19 blockade was eased. Decide whether to adjust the policy.

Eurozone inflation has recovered months after falling below zero last year, and most economists predict that it will exceed the ECB’s target of “close to 2% but less than 2%” this year. This is likely to raise calls for central banks to begin curbing monetary stimulus.

However, some ECB policy makers, including its president, Christine LagardeNeeds to maintain a very accommodative policy, as the recent surge in inflation is only a temporary phenomenon and is due to a temporary impact, which is expected to weaken next year. It states that there is.

Core inflation, excluding the more volatile prices of energy, food, alcohol and tobacco, rose more slowly than the headline numbers, rising from 0.7% in April to 0.9% in May. Prices in the region’s services sector, pushed down by lockdowns from the new coronavirus, rose 1.1%.

Inflation exceeds ECB target for the first time since 2018

Source link Inflation exceeds ECB target for the first time since 2018

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