Is 5% peak inflation, or will we see inflation at more than 10%?
I do not know much about the economy of the European countries, as a result of this, I do not know the extent the inflation can be, but I know the net result in long term will still be inflation, as it is happening all over in the world. The inflation again and again lead to fiat declination and the fiat purchasing power will be reduced. That is why we need to go for bitcoin or other asset that can be an hedge against fiat devaluation. 
Topic: Euro zone inflation hit a new record high of 5% in December - page 3. (Read 330 times)
When the official inflation is that, the real inflation is even worse. The problem seems to be that the US is willing to fight inflation soon while in the Eurozone it is not clear, but if the FED really starts to act, the Eurozone will have to follow them. It should be remembered that since its creation, the ECB's most important mission has been to control inflation, while the FED, although it has also taken inflation into account, has been more focused on economic growth.
Germany has a central role in the Eurozone, and the specter of the Weimar Republic's hyperinflation (very unlikely nowadays I'd say) may force a change in monetary policy as well.
Either way, on both sides of the Atlantic, they are in a catch-22 situation. Monetary policy has led to high inflation, and with the economy relying on massive printing like a junkie relies on heroine, cutting back on buying, raising rates, etc, is clearly going to have an effect on the economy.
I guess they are going to try not to let it get out of hand anywhere, reduce the printing and hope that there is no big crisis or stock market crash, in which case they will go back to printing like there is no tomorrow.
Germany has a central role in the Eurozone, and the specter of the Weimar Republic's hyperinflation (very unlikely nowadays I'd say) may force a change in monetary policy as well.
Either way, on both sides of the Atlantic, they are in a catch-22 situation. Monetary policy has led to high inflation, and with the economy relying on massive printing like a junkie relies on heroine, cutting back on buying, raising rates, etc, is clearly going to have an effect on the economy.
I guess they are going to try not to let it get out of hand anywhere, reduce the printing and hope that there is no big crisis or stock market crash, in which case they will go back to printing like there is no tomorrow.
Quote
Euro zone inflation hit a new record high in December, raising more questions about the European Central Bank’s monetary policy.
Preliminary data showed Friday that the headline inflation rate came in at 5% for the month, compared to the same month last year. The figure represents the highest ever on record and follows November’s all-time high of 4.9%.
The increase was mostly due to higher energy prices.
“After reaching 5.0% in December, headline euro-zone inflation should fall this year as the energy component plummets,” Capital Economics said in a note Friday.
Inflation has been in the spotlight after consecutive increases in recent months, with money managers debating whether the European Central Bank should be taking a more aggressive stance to combat rising prices.
Preliminary data showed Friday that the headline inflation rate came in at 5% for the month, compared to the same month last year. The figure represents the highest ever on record and follows November’s all-time high of 4.9%.
The increase was mostly due to higher energy prices.
“After reaching 5.0% in December, headline euro-zone inflation should fall this year as the energy component plummets,” Capital Economics said in a note Friday.
Inflation has been in the spotlight after consecutive increases in recent months, with money managers debating whether the European Central Bank should be taking a more aggressive stance to combat rising prices.
Source https://www.cnbc.com/2022/01/07/euro-zone-inflation-december.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard
Do you still think we can get inflation at 2% levels in the medium term with the continuation of the current policies or will we need to press the brakes hard?
Is 5% peak inflation, or will we see inflation at more than 10%?
Jump to: