Thursday, July 14, 2011

In view of 2.7% stable Eurozone inflation, was the ECB rate hike needed after all?

According to the Eurostat:

June 2011 Eurozone annual inflation stable at 2.7% (ie same as in May).

In the EU (27( it is down to 3.1%

Was the ECB new rate hike from 1.25% to 1.5% needed last Thursday then?

Why?

Note: Maybe the May industrial producer prices? See my "What is driving Eurozone prices up?" post July 7.

1 comment:

Aleš Chmelař said...

A similar reflection: http://aleschmelar.wordpress.com/2011/04/08/dr-competitivelove-or-how-i-learned-to-stop-worrying-and-love-inflation/