European inflation jumps to record 7.5% – ECB chief Lagarde expects energy prices to ‘stay longer’ – Economy Bitcoin news

European inflation jumps to record 7.5% – ECB chief Lagarde expects energy prices to ‘stay longer’ – Economy Bitcoin news

While inflation continues to rise in the US, the inflation rate in the eurozone reached another high level last month, reaching 7.5% in March. Energy and food prices have risen in 19 member states’ economies, and European Central Bank President Christine Lagarde expects energy prices to “stay longer.”

Inflation in the eurozone continues to rise, the ECB predicts that it will increase rates three times this year

The 19 euro-sharing countries are suffering from rising inflation, according to March data showing the inflation rate rose to 7.5%. Similar to the US Federal Reserve, the European Central Bank’s (ECB) inflation target is 2%, and inflation in food, services, energy and durable goods prices has risen well above the target.

European inflation jumps to record 7.5% – ECB chief Lagarde expects energy prices to ‘stay longer’ – Economy Bitcoin news

Addressing an audience in Cyprus on Wednesday, ECB President Christine Lagarde discussed higher living costs in Europe and stressed: “three main factors are likely to increase inflation.” During her speech in Cyprus, Lagarde insisted:

Energy prices are expected to stay longer. Global production bottlenecks are likely to persist in certain sectors, [and] households are becoming more pessimistic and could reduce consumption.

Reports say the ECB, like the Fed, is pressed against a wall and has to deal with inflationary pressures. Reuters reporter Balazs Koranyi says “Markets are now priced at 60 basis points to increase rates by the end of the year.” In a note to clients on Friday morning, senior European economist at Capital Economics, Jack Allen-Reynolds, wrote that the company “predicted three rate increases of 25 basis points for this year.”

“Given that inflation in the eurozone is rising even higher than the ECB’s forecast and will probably remain very high until the end of the year, we think it will not be long before the Bank starts raising interest rates,” the economist said on Friday. Reports further show that they are investors from Spain and Germany betting to the ECB to encourage an increase in interest rates this year.

Danish politician Margrethe Vestager is trying to persuade EU residents to avoid long hot showers

Much of the blame for rising inflation in 19 countries is also similar to that of the United States, as European bankers and bureaucrats blaming the war between Ukraine and Russia. Deutsche Bank Chief Investment Officer Christian Nolting explained in a note that increased inflation could still be present. “In developed economies, already elevated inflation rates may now be even higher, given the shock of oil and gas prices caused by the conflict,” Nolting wrote. “Sanctions, as well as shutting down companies in Russia, are exacerbating problems in the supply chain.”

There are currently very few reports on the EU Covid-19 spending policylong-term negative ECB rates and huge ECBs monetary expansion in the last two years. Prior to the release of data on eurozone inflation, German Economy Minister Robert Habeck begged the Germans to reduce their energy consumption.

“Currently, there are no shortages in supply,” Habek noted. “However, we must increase precautionary measures in order to be ready in case of escalation on the part of Russia. Interestingly, Danish politician and European Commissioner for Competition Margrethe Vestager, tried to convince EU residents to stop taking hot showers for a long time. Vestager said:

Every time you turn off the hot water in the shower, say – Take it, Putin!

Labels in this story

19 countries, 19 member state economy, 60 basis points, 7.5%, 7.5% inflation, Balazs Koranyi, Bureaucrats, Christian Nolting, Christine Lagarde, Danish politician, ECB, economy, Economy, energy prices, European bankers, European Central Bank, European Commissioner, eurozone, inflation, Jack Allen-Reynolds, Margrethe Vestager, rate increases, Robert Habeck, federal, war of Ukraine and Russia, US

What do you think about rising inflation plaguing the eurozone? Tell us what you think about this topic in the comments section below.

European inflation jumps to record 7.5% – ECB chief Lagarde expects energy prices to ‘stay longer’ – Economy Bitcoin news

Jamie Redman

Jamie Redman is a news anchor on Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols that appear today.




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