Germany had shown signs of fire since yesterday, which, against all estimates, showed the highest inflation in the last 70 years at 10.9% – The inflationary fire is maintained by energy
By Chrysostomos Tsoufis
The fears of the most pessimistic were unfortunately confirmed, and Eurozone for the first time in her history she catches double digit rate of inflation for September with Eurostat announcing a round 10%. Demonstrations had been shown since yesterday by Germany, which, against all estimates, showed the highest inflation in the last 70 years with 10.9%.
Inflation in Greece jumped to 12.1% from 11.2% in August, showing the highest increase on a monthly basis, after 2 months of slight deceleration. The country has the 6th highest inflation in the Eurozone behind Estonia, Lithuania, Latvia, the Netherlands and Slovakia. More than half of the Eurozone countries, 10 out of 19, now have double-digit inflation.
The inflationary fire energy conserves, where inflation exceeded 40% again after a 2-month break, with 40.8%. However, particularly worrying are the data on the inflation of unprocessed food, which is rising month by month, reaching 12.7%, while the inflation of processed food is at 11.5%. Not at all reassuring is the picture in services, where inflation is heading towards 5%, erasing the 3rd consecutive month of increase.
With inflation persisting and strengthening, the pressures on the ECB are intensifying for a more drastic increase in interest rates. Frankfurt has already raised the key interest rate by 125 points (1.25%) in its last 2 meetings, and the voices within the Board of Directors are constantly increasing (the last being the central bankers of Lithuania and Estonia) that the next increase next week should be by 75 basis points.
Regardless of the amount of the increase, it is certain that it will not be the only one. Christine Lagarde has already predicted with her statements about multiple increases until … the beast is tamed…
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I have worked in the news industry for over 10 years and have been an author at News Bulletin 247 for the past 5 years. I mostly cover technology news and enjoy writing about the latest gadgets and devices. I am also a huge fan of music and enjoy attending live concerts whenever possible.