Decades of peaks are leaning
In November, inflation in the United States was already at 6.8%, a nearly forty-year high. PCE core inflation (the private index of personal consumption) was much more watched by the Fed at 4.7%, which is also well above the central bank’s 2% target, even though by 2020 they had switched to a more flexible approach.
The situation is similar in Europe, with the eurozone inflation rate at 4.9% in November, the highest level since the creation of the single currency. The European Central Bank (ECB) thus seems to be in a slightly easier position, but this situation is also more difficult, as inflation is much more heterogeneous on the continent. There is a significant difference between Malta’s price increase of 2.4% and Lithuania’s 9.3%, which should be managed by the European Central Bank somehow.
Of course, prices are not rising uniformly in the 52 states of the United States either, meaning that the Fed, made up of representatives of regional central banks, will have to deal with the same problem, but as a federal state, economic ties and convergence will be much stronger.
A serious threat has returned
- No price increase seen for decades
- He also pulled through the calculations of the central banks
- 2022 won’t be much easier either
Source: Portfolio.hu – Gazdaság by www.portfolio.hu.
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