EU CRACKS DEEPEN: Germany and ECB set for showdown as inflation soars to four-year high
TENSIONS between German politicians and the European Central Bank (ECB) are likely to erupt again after inflation in the eurozone jumped to its highest level in four years in December.
By LANA CLEMENTS
Express.co.uk
Wed, Jan 4, 2017
The cost of living jumped to 1.1 per cent last month, almost double November’s 0.6 per cent, as measured by official European Union data office Eurostat.
Prices across the bloc are now rising at the fastest pace since September 2013.
But Germany saw a much higher rise in price inflation at a hefty 1.7 per cent, making life more expensive for residents within the eurozone’s largest economy.
Investors fear the inflation figures will make the next meeting of ECB governing council in March one of the most difficult, as policymakers try to implement policies that cover vastly different economies of eurozone members.
The ECB is helping to drive up inflation across the region with its mammoth money-printing programme, which injects billions of euros into the eurozone every month.
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