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The specter of inflation catches galloping Europe

2021-08-31T20:11:57.675Z


Economists believe the rise in prices to be temporary. But its duration and extent are starting to cause concern.


The "shock" appears on the front page of the tabloid

Bild

in Germany on Tuesday.

With 3.9% inflation in August, the highest since the eve of the 2008 financial crisis, the popular daily wonders about the fate of its readers' economies.

The much-maligned scenario across the Rhine seems to be taking shape: negative interest rates, an ultra-unconventional monetary policy, uncontrolled public spending and inflation which is amputating the stockings of savers.

The subject has not yet emerged in the electoral campaign to replace Angela Merkel at the end of September.

But it could

"cause growing dissatisfaction among people, who really feel the rise in prices,"

fears Carsten Brzeski, economist at ING in Frankfurt.

The latter was among the few to anticipate an inflationary scenario at the start of the year.

Driven by Germany, this scenario is materializing well beyond expectations.

For the euro area as a whole, inflation has reached

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Source: lefigaro

All news articles on 2021-08-31

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