Thursday, July 7, 2011

What is driving Eurozone prices up?

What is driving Eurozone inflation up?

a) Global energy & food prices
b) a deficient EU Single Market for goods, services and jobs?

Here's a hint:

UK (11.9%), NL (10.7%) and Belgium (9.7%), continued in May 2011 to lead the EU in the hike of industrial producer prices (when compared to May 2010 prices) along with Bulgaria (10%) and now Denmark (10.8%), Lithuania (9.9%) and Latvia (9.7%)

France (6.1%) and Germany (6.0%) seem to be in somewhat of a convergence - cohesion as one would expect even in domestic market, since a domestic market of an EU member state is open to competing products from other EU member states (not to mention China, et al).

Due to proximity and the resulting alleged close economic links, one would expect at least NL, Belgium (partners in the Eurozone17 with Germany) and maybe Denmark (outside the Eurozone but Northerly neighbour of to Germany) to have similar figures to Germany. Yet, they do not!

What does this indicate?

See also my previous posts:

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