According to the operators, the 27.4% rise in the price of energy had a decisive weight on inflation Europe in November, but services also increased. Specifically, in Germany the increase in inflation was 6% in the index that makes prices compatible between the Euro countries.
The president of the ECB, Christine Lagarde, insisted that the rise in the price index will begin to slow down in the coming months and that the goal will be met. Despite this, many analysts believe that inflation will remain at higher levels for quite some time.
European financial markets are very attentive to what the ECB decides at its meeting scheduled for December 16, on the future of interest rates and economic projections. There the future of the Bank’s investment program in financial assets will be discussed.
The economic forecasts are conditioned to what happens with the Omicron variant, which could force the restriction of some activities, which would have an impact on the level of economic activity. The Vice President of the ECB, Luis de Guindos, acknowledged that “The most worrying thing about economic development in the eurozone right now is inflation.”
“The variables that cause inflation are temporary and I expect it to begin to fall next year and any possible withdrawal of measures to support eurozone companies should be approached with caution,” added De Guindos.
The Governor of the Bank of France and member of the Governing Council of the ECB, François Villeroy, pointed out that “Europe is clearly heading towards recovery and the economic consequences of the different waves of Covid-19 became less and less damaging, so Ómicron should not have a significant impact on the economy.”
Source From: Ambito
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