The European Central Bank (ECB) does not seem to have escaped the threat of an inflation surge like other major central banks around the world, after Germany’s consumer price index (CPI) once again hit a new record high.
According to data released by the Federal Office of Statistics on Monday, consumer prices rose 6.0% year -on -year in November from 4.6% recorded in October.
The reading was the highest rate recorded since January 1997, thus further increasing pressure on the ECB. Meanwhile, the national consumer price index jumped by 5.2% year -on -year, the highest since June 1992.
However, ECB policymaker Isabel Schnabel said the hike did not come as a surprise to the central bank even though the latest figures recorded were stronger than initially predicted.
In addition to that, Schnabel also said the central bank believes that inflation peaked in November and will gradually return to show a decline next year. Therefore, it is still too early to consider raising interest rates.
Preliminary European Zn inflation forecast data will be released in the European session today, where it is expected to show an increase to 4.5% in November from 4.1% previously recorded.
Meanwhile, the euro gained some strength to rise in the Asian session, in line with the depreciation displayed by the greenback dollar.
