ECB Chief Lagarde Anticipates Fuel Costs Will Continue Higher For Extended As European Prices Soars To The A New Peak Of 7.5 Percent

• The European Central Bank’s (ECB) inflation objective is 2%, similar to the US Federal Reserve, and inflation in food prices, services, energy, and durable goods has grown significantly beyond the target. 

• Energy prices are projected to remain high for a longer period of time. In several sectors of global manufacturing, bottlenecks are likely to remain, and households are becoming more gloomy and may reduce spending.

• According to reports, investors in Spain and Germany are counting on the ECB to raise rates this year.

While inflation in the United States continues to soar, the eurozone’s inflation rate hit a new high last month, reaching 7.5 percent in March. Energy and food costs have skyrocketed across the economies of the 19 EU member states, and European Central Bank President Christine Lagarde predicts that energy prices will remain higher for longer. According to numbers from March, the 19 countries that share the eurozone are experiencing growing inflation, with the rate climbing to 7.5 percent. 

Prices Inside The Eurozone Remains Still Rising And The ECB Is Expected Likely Increase Prices Three More These Year

The European Central Bank’s (ECB) inflation objective is 2%, similar to the US Federal Reserve, and inflation in food prices, services, energy, and durable goods has grown significantly beyond the target. ECB President Christine Lagarde acknowledged the rising cost of living in Europe with an audience in Cyprus on Wednesday, emphasizing that three fundamental reasons are expected to drive inflation higher. Lagarde insisted during her remarks in Cyprus:

Energy prices are projected to remain high for a longer period of time. In several sectors of global manufacturing, bottlenecks are likely to remain, and households are becoming more gloomy and may reduce spending.

According to reports, the ECB, like the Fed, is up against a brick wall and must confront inflationary forces head-on. Markets are now pricing in 60 basis points of rate hikes by the end of the year, according to Reuters writer Balazs Koranyi. The senior Europe economist at Capital Economics wrote a note to clients on Friday morning.

We believe it won’t be long before the ECB starts hiking interest rates, with euro-zone inflation growing even faster than expected and expected to remain high for the rest of the year, the economist said on Friday. According to reports, investors in Spain and Germany are counting on the ECB to raise rates this year.

Much of the blame for growing inflation in the 19 countries is shared with the United States, with European bankers and bureaucrats blaming the Ukraine-Russia conflict. In a note, Deutsche Bank’s chief investment officer Christian Nolting stated that high inflation may remain. Given the conflict-induced oil and gas price shock, already high inflation rates in industrialized nations may now be pushed further higher, Nolting stated. Sanctions, as well as companies’ suspension of activities in Russia, are compounding supply chain issues.

Margrethe Vestager The Danish Lawmaker Is Attempting To Encourage EU Citizens To Resist Taking Lengthy Warm Baths

There is now relatively little coverage of the EU’s Covid-19 policy expenditure, the ECB’s long-term negative interest rates, and the ECB’s substantial monetary expansion during the last two years. Germany’s economic minister, Robert Habeck, urged Germans to limit their energy use before the eurozone’s inflation data was released.

At this time, there are no supply shortages, Habeck stated. We must, nevertheless, increase precautionary measures in order to be prepared in the case of a Russian escalation. Margrethe Vestager, a Danish politician and European Commissioner for Competition, tried to urge EU citizens to take shorter, hotter showers. Vestager stated,  Say — Take that, Putin! every time you turn off the hot shower water.

ALSO READ: Cryptocurrency scammers to face the absurd 40,000-year sentence in Turkey 

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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