Eurozone inflation at six-year high

EU

Eurozone annual inflation is expected to be 3.0% in November 2007, six-year high, according to a flash estimate issued by Eurostat, the Statistical Office of the European Union. It was 2.6% in October.

The European Central Bank’s target inflation rate is „below but close to 2%.” Inflation in the Eurozone rose to 3.4% in May 2001, the highest level since 1993. Oil and food prices have boosted inflation around the world in recent times and the question for the ECB is: how long will the rate remain elevated and its related impact on inflation expectations?

The ECB will hold the monthly meeting of its Governing Council next Thursday. Most market analysts expect it to keep its key rate on hold at 4% because of the credit crisis and the expectation that the US Federal Reserve will cut rates from the current level of 4.5% on Dec 11th. A rate hike by the ECB in those circumstances would boost the value of the euro against the dollar at a time when the Eurozone economy is slowing. (finfacts)

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.