More Inflation Fears in Europe

January 23rd, 2011
in econ_news

Econintersect:  Last week GEI had a news brief discussing rising inflation fears in Europe centered on Germany.  The latest concerns come from Great Britain.  In Europe, inflation has risen above the European Central Bank’s target for the first time in more than two years, leading investors to bet on interest rates rises in the eurozone and UK this year.

Follow up:

The Financial Times writes:

Some of the world’s leading investors have turned bearish on government bonds from developed countries as they warn of the growing danger of inflation.

Data this week showing the UK’s consumer price index hit 3.7 per cent in December fuelled that concern and sent benchmark British borrowing costs to an eight-month high of 3.72 per cent.

Sources:   GEI News Blog and Financial Times


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