• About
  • Privacy & Policy
  • Contact Us
Procurement Nation
  • Home
  • Procurement
    • Shipping
    • Best Procurement Software
    • Supply Chain
      • What is supply chain management?
      • Tyson Foods Food Supply Chain
  • Markets
  • Banking
  • Contact Us
  • Cryptocurrency
No Result
View All Result
  • Home
  • Procurement
    • Shipping
    • Best Procurement Software
    • Supply Chain
      • What is supply chain management?
      • Tyson Foods Food Supply Chain
  • Markets
  • Banking
  • Contact Us
  • Cryptocurrency
No Result
View All Result
Procurement Nation
No Result
View All Result

Euro zone inflation hits 5%, marking another record high

Mark White by Mark White
January 8, 2022
in Supply Chain
0
Euro zone inflation hits 5%, marking another record high


FRANKFURT, Jan 7 (Reuters) – Euro zone inflation rose unexpectedly last month, likely making for more uncomfortable reading at the European Central Bank, which has consistently underestimated price pressures and come under fire for this from some of its own policymakers.

Inflation in the 19 countries sharing the euro rose to 5% from 4.9% in November, a record high for the currency bloc and well ahead of analysts’ expectation for 4.7%.

Energy prices, up 26% compared to a year earlier, remained the main driver but the increases for food, services and imported goods were also all well above the ECB’s overall 2% inflation target, data from Eurostat showed on Friday.

Register now for FREE unlimited access to Reuters.com

With the economy roaring back to life from its initial pandemic shock last year, price growth took off, catching the ECB – which predicted just a benign inflation hump a few months ago – off guard.

Adding to the upward pressure, supply-chain bottlenecks curtailed the availability of consumer products, while households, forced into saving their cash for a year, started spending on everything from new cars to restaurant meals.

Most of these inflation drivers are temporary, so price pressures should ease eventually.

People walk through the Mall of Berlin shopping centre during its opening night in Berlin, September 24, 2014. REUTERS/Thomas Peter

But views diverge on how fast inflation will come down and where it is likely to settle once the economy adjusts to a new normal.

The ECB sees inflation back under 2% by the end of this year, but a long list of influential policymakers question this narrative, warning that risks are skewed towards higher figures and that above-target readings could persist into next year.

Part of the concern is that underlying prices – or inflation excluding volatile food and fuel prices – are also above target, suggesting that sectors prone to weak price pressures over the past decade are now adjusting.

Indeed, inflation excluding food and fuel prices, closely watched by the ECB, rose to 2.7% in December from 2.6%, while a narrower measure that also excludes alcohol and tobacco products held steady at 2.6%. Both figures were just above expectations.

Still, no policy action from the ECB is likely anytime soon.

The bank curbed but extended stimulus only a few weeks ago, so no big review of its stance is likely before March.

The ECB also argues that wage growth, a precondition of durable prices pressures, is anaemic, while the surge in coronavirus infections will likely curtain economic activity and weigh on inflation.

Register now for FREE unlimited access to Reuters.com

Reporting by Balazs Koranyi; editing by John Stonestreet

Our Standards: The Thomson Reuters Trust Principles.



Source link

Previous Post

After record M&A in 2021, Canada set for another strong year for dealmaking

Next Post

Next raises profit outlook for fifth time after strong Christmas

Mark White

Mark White

Next Post
Next raises profit outlook for fifth time after strong Christmas

Next raises profit outlook for fifth time after strong Christmas

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected test

  • 116 Followers
  • 65.3k Followers
  • 174k Subscribers
  • 23.6k Followers
  • 99 Subscribers
Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Afilmywap Bollywood Hollywood HD MP4 Movies Download Free

Afilmywap Bollywood Hollywood HD MP4 Movies Download Free

August 14, 2022
Bollyflix New Bollywood HD Movies Download Online Free

Bollyflix New Bollywood HD Movies Download Online Free

August 14, 2022

KatmovieHD Bollywood Hollywood Hindi Tamil Telugu HD Movies Download

August 13, 2022
Oil rates went down on Monday, floating near multi-month lows, as economic crisis worries hurt need expectation

Oil rates went down on Monday, floating near multi-month lows, as economic crisis worries hurt need expectation

August 13, 2022

Recent News

Afilmywap Bollywood Hollywood HD MP4 Movies Download Free

Afilmywap Bollywood Hollywood HD MP4 Movies Download Free

August 14, 2022
Bollyflix New Bollywood HD Movies Download Online Free

Bollyflix New Bollywood HD Movies Download Online Free

August 14, 2022

KatmovieHD Bollywood Hollywood Hindi Tamil Telugu HD Movies Download

August 13, 2022
Oil rates went down on Monday, floating near multi-month lows, as economic crisis worries hurt need expectation

Oil rates went down on Monday, floating near multi-month lows, as economic crisis worries hurt need expectation

August 13, 2022
  • About
  • Privacy & Policy
  • Contact Us
Call us: +1 234 JEG THEME

© 2021 Procurement Nation - Supply Chain & Logistics News

No Result
View All Result

© 2021 Procurement Nation - Supply Chain & Logistics News