Eurozone Inflation Surges Ahead of ECB Rate Cut Decision
411 sats \ 7 comments \ @TomK 31 May econ
As the Eurozone braces for a pivotal economic moment, inflation is once again on the rise. This spike comes just weeks before the European Central Bank (ECB) plans to lower interest rates, raising significant concerns. The ECB headquarters in Frankfurt faces a tough realization: lowering rates may not be the best move for a currency backed solely by public trust.
The latest data shows the Eurozone’s core CPI year-over-year flash at 2.9%, surpassing forecasts of 2.7% and the previous figure of 2.7%. This unexpected increase underscores the complex challenges ahead for the ECB and the European economy - that's the fiat trap of a currency, backed by nothing meanwhile the new BRICs bloc is building settlement systems based on gold and energy.
Europeans could see their energy imports becoming increasingly expensive, driven by surging inflation as their currency gets debased to finance growing public debt.
write
preview
related posts
222 sats \ 0 replies \ @0xbitcoiner 31 May
Chart 2 shows the relative contributions of the major categories: energy; food; goods; and services. Services inflation now accounts for the vast bulk of the overall inflation rate. In turn, this reflects the non-uniform dynamics: while the other categories have seen major declines, with the April data indicating energy inflation running at -0.6 per cent, food inflation at 2.8 per cent and goods inflation at 0.9 per cent, services inflation was still elevated at 3.7 per cent.
https://www.ecb.europa.eu/press/key/date/2024/html/ecb.sp240527~13d86a7d66.en.html
reply
54 sats \ 0 replies \ @jgbtc 31 May
Time to ramp up insect protein production.
reply
42 sats \ 4 replies \ @Satosora 31 May
You think they will buy into brics? Can they without changing their currency?
reply
10 sats \ 3 replies \ @TomK OP 31 May
no, the Europeans will stick to their vision of centralization of the single currency and total control until the bitter end. what i perceive is an increasing hostility towards the states that join the bricks. ironically, these are the world's major energy producers, while Europe has no energy reserves to speak of. this is bound to crash this currency one way or another.
reply
42 sats \ 2 replies \ @Satosora 31 May
I guess it depends on what kind of relations they can build up with the brics states. They want to sell energy, europe wants to buy it. Eventually it will work out.
reply
10 sats \ 1 reply \ @TomK OP 31 May
Not as long as they are fighting and sanctioning Russia
reply
0 sats \ 0 replies \ @Satosora 31 May
Oh right, l forgot about that. That is an issue...
reply