Eurozone prices exceed the ECB target for the first time since 2018

The economic downturn in the Eurozone has risen to 2% in May, the first time for the price to surpass what the European Central Bank has done for more than two years, which has hampered next week’s decision on whether to adhere to unconventional data.

The jump from 1.6% in April followed a sharp increase in consumer prices in the US, which hit a recent hit 4.2 percent. The increase in the euro share potential could raise concerns among bankers that central banks will accelerate slope major financial promotions launched last year as a result of the coronavirus epidemic.

The ECB’s governing body is meeting next week to decide whether to change its monetary policy – including its recent trend in buying bonds – in response to signs that economic activity and prices are rising as measures to curb Covid-19 decline.

The economic downturn in the Eurozone has risen sharply after a few months below zero last year, leading economists to speculate that this year will exceed the ECB’s level below, but by almost 2%.

However, a number of ECB manufacturers, including their president Christine Lagarde, have said that the recent rise in prices has taken place. a temporary wonder, run by a single start, and I know it will end next year. He argues that this means that the principles of the central bank must remain stable.

The 13.1% annual growth rate in the eurozone electricity prices is the main reason for the low cost of consumer prices in 19 countries with less spending than expected from October 2018, according to Eurostat.

Rising prices, with the exception of fixed electricity prices, food, alcohol and tobacco, rose modestly, up from 0.7 percent in April to 0.9% in May. Working rates for blocs, burdened with coronavirus closure, rose 1.1 percent.

Many economists think that long-term economic growth will not happen in the euro because millions of people have been laid off, fired or fired during this time.

The ECB estimated that wage growth in the euro was also weakening for the quarter to 1.4 percent.

Christer Weil, an economist at Commerzbank, said: “The economic downturn in the euro zone caused by the corona epidemic will continue to decline in wages in 2021.”

Eurostat says unemployment in the bloc rose to 8% in April, down from nine months. The unemployment rate has dropped to 15.4m, down from 134,000 since March, yet about 1.3m beyond April 2020.

Andrew Kenningham, an economist at Capital Economics, said that while employment is expected to “grow” as employment levels rise, “companies will be able to attract more hard-working workers, so we do not expect unemployment to decline this year.”

Peter Altmaier, Germany’s finance minister, said he was following a “very careful” inflation and noted the high cost of timber, semiconductors and oil prices.

“As a result of the epidemic, as well as the rapid economic growth, many goods and services are missing,” he said. “The real question is [level of inflation] we must be willing to do it. ”

Pointing out the rising economic crisis, a business survey conducted on Tuesday said that euro makers are experiencing unprecedented inflation and inflation, making it more likely to meet global demand.

IHS Markit City a guide for managers in manufacturing found that “intervention costs have risen sharply… hitting at an unprecedented rate in response to a widespread shortage of drugs.” It states that factories “used price forces to raise their costs faster than 18 years of access to information”.

Separately, 44% of German construction companies have difficulty finding resources in a timely manner, according to a study by the Ifo Institute in Munich. “Wooden trees have exploded in the last few months, and the woodworking machine can’t afford it,” Felix Leiss told Ifo.