Macroeconomics

Inflation trends unclear

However, experts are not in full agreement about interest trends in the US and the eurozone. While some believe that the trend of rising interest rates in the USA might slow down or even stop; the ECB has increased interest rates by a quarter of a per cent but they have called it just a signal and not yet a trend. If signs of inflation do not recede though, further interest rate hikes have to be expected in the eurozone too. Those who are optimistic that the rising interest rates will come to a halt are now pointing at low or even negative core inflation rates and say that energy costs are the only reason for the inflationary pressure. We don’t agree and the way we see it, higher costs for oil and other raw materials, plus the end of anti-dumping campaigns will eventually be converted into higher consumer prices.

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