quote:
Europe Inflation Accelerates to 3.5%, Sentiment Drops
By Fergal O'Brien
March 31 (Bloomberg) -- European inflation accelerated to the fastest pace in almost 16 years, making it harder for the European Central Bank to cut interest rates as a global credit squeeze saps confidence among executives and consumers.
Consumer-price inflation in the euro area accelerated to 3.5 percent this month, the highest rate since June 1992, the European Union's statistics office in Luxembourg said today. The euro rose after the publication of the figure, which was higher than economists had forecast. A separate report showed consumer and business confidence declined in March.
The ECB is refusing to follow the U.S. Federal Reserve and reduce interest rates in response to a global crisis as food and energy prices fuel inflation. ECB council member Erkki Liikanen said today that inflation expectations have ``hardened'' and at the same time is concerned that the growth outlook has ``become more subdued,'' summing up the central bank's dilemma.
BloombergDe ECB faalt imo ten opzichte van haar eigen doelstellingen. Een geldgroei van beneden 8% per jaar wordt niet gehaald en is nu ruim 11% verder is de inflatie veel hoger dan de doelstelling van 2%.
It is important to distinguish between a stupid person and a shit head. A stupid person simply can't process the information , a shit head is intelligent but his mind is full of garbage.