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By Dr. Thomas Gitzel, Chief Economist, VP Bank Group
In the Euro zone, in August the inflation rate rose from 1.3% to 1.5%. The inflation rate in the euro zone has increased more than expected. Fuel oil, petrol and food are among the prize winners. However, whoever believes that the higher inflation rate will have an impact on the ECB's next week session is likely to be caught on the wrong foot. The current inflation is a look in the mirror.
The ECB prepared its future monetary policy on the basis of the forecasts calculated by ECB economists. The euro revaluations, however, dampen the inflation outlook. Mario Draghi is therefore in a difficult predicament. On the one hand, he wants to reduce monthly borrowing, while on the other hand the...
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