By Swann Collins, investor and consultant in global affairs. Eurasia Business News – November 30, 2021
The rate of annual inflation of the euro zone hit 4.9% in November, against 4.1% in October, 3.4% in September and 3.0% in August, according to a flash estimate issued by Eurostat, the statistical office of the European Union.
Inflation continues to rise largely due to energy prices: in November they rose by 27.4% compared to November last year, and in October – by 23.7%. There was also an increase in prices for services – 2.7% in November and 2.1% in October, as well as for industrial goods – 2.4% in November and 2% in October.
Inflation growth in November exceeded forecasts of analysts polled by Reuters: they expected an inflation rate of 4.5%. Now analysts believe that continued inflation in the euro area could force the ECB to tighten monetary policy.
Among the eurozone countries, the highest inflation monitored in November was in Lithuania, by 9.3%, and the least, in Malta, by 2.3%. German inflation in November was 6%, in France – 3.4%, in Spain – 5.6%, and in Italy – 4%.
On November 15, 2021 the euro currency fell below $ 1.14, to its lowest level since July 2020, after that the ECB chairman Christine Lagarde dismissed the prospect of an increase of the key rate in 2022, deeming it “counterproductive”. The boss of the ECB once again judged that the current inflationary surge would be temporary.
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© Copyright 2021 – Swann Collins, investor and consultant in global affairs.