After Latvia scary inflation figures, here is Ireland joining the club.
"Irish Annual Consumer Price Inflation increased to 5.0% in November"
"Irish Annual Consumer Price Inflation increased to 5.0% in November"
"Food prices were another culprit.... As recently as last April, inflation in these items was close to zero; now it is 5%. Flour was up 20% in the month, 42% in the year. Eggs, biscuits, milk, bread and sweets all rose strongly and many of them are" said Pat McArdle, Chief Economist of Ulster Bank.
It's funny, Irish grocers have made 40% profit by just keeping Flour in their storage. It's growing faster than gold!. Seriously, are central bankers credible? why don't they fulfill their mandate? oh yes it's only headline inflation, is it really? what about about if it is structural and that prices are here to stay elevated. I start to be sceptical on their ability on keeping price under control.
In the past 20 years, china acted as a deflationnary force, now it's acting as an inflationnary forces as its citizens are now competing on resources such as food.
Germans bankers have been the most vocal. The bundesbank has still in memory the 30's inflation getting out of control triggering the darkest period of their history.
Investors are calling the ECB to cut interest rate. If they Bend as the U.S. did , then welcome back to the dark ages....and I'm not even talking about the consequences on the housing market...
2 comments:
Central Banks have failed. That becose they are PRIVATE banks owned by the normal banks that they should control.
We should not allow them to print money from nothing and borrow those to states, people, etc. States should print money, at least if there is inflation, those money are for social care and not to save speculators.
"The target rate of the European Central Bank is below but close to 2%. The rate of 3.1% is the highest since 2001."
INcredible inflation for not a credible ECB...
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