Tuesday, December 7

Global central banks under fire as cost of living rises

Christine Lagarde, director of European Central Bank, joined other governments and economists around the world in ensuring that recent spikes in consumer and energy prices are transitory and that rising inflation will ease once supply chain disruptions are resolved and pandemic-related labor shortages and global economy restart.

But Lagarde conceded that the times may not be as previously predicted.

We still see inflation moderating next year, but it will take longer to come down than originally expected, ”the former director of the European Parliament told lawmakers. International Monetary Fund.

Recent figures suggest that inflation may persist for some time, raising concerns about an explosive cost of living crisis, which could shake up domestic politics in countries and disrupt the electoral plans of the ruling parties and their leaders.

Central banks have been saying that price increases for goods, rent, food and energy are exceptional, the fallout from economies struggling to recover from the coma induced by lockdowns. COVID-19 and pandemic restrictions.

But new inflation data from around the world has beaten forecasts, and central bankers are now being criticized for failing to act to curb rising prices.


Americans are already feeling rapidly rising costs of living.

According to a series of opinion polls carried out by the pollster YouGov for the magazine The Economist, 46% of Americans said they believed the state of the economy was “getting worse,” and only 19% said it was “getting better.”

On EE.UU., the consumer price index rose 6.2% in the 12 months ending in October, the highest rate in three decades.

Americans believe that rising wages were not keeping up with rapidly rising prices.

56% percent of respondents from YouGov They said they had trouble paying for gas, 48% couldn’t easily pay their rent or mortgages, and 45% said they had difficulty feeding their families.

Some member states of the European Union they are also facing a cost of living crisis.

Romania reported an annual inflation rate of 6.5% in October, the largest increase in consumer prices among EU member states in the southeast of Europe, according to Eurostat, the statistical office of the EU.

Inflation in the euro area stands at 4.1%, more than double the target for the European Central Bank.

Increases seen as transitory

The President of the European Central Bank, Christine Lagarde, he admitted that euro zone inflation is likely to remain high for longer than expected.

She remained committed to the idea that the price increases were likely to be transitory, and she still forecast that inflation would fall below the bank’s 2% target in the medium term.

Some economists from EuropeHowever, they question his optimism.

They say the pandemic is far from over, pointing to a fourth wave that will cause an increase in cases across much of the continent and the prospect of a return from economically damaging retractions.

Germany has declared a state of emergency and Austria has announced a total lockdown starting on Monday, becoming the first European country to return to a total lockdown and the first to make vaccination mandatory. COVID-19.

The coronavirus situation in Germany is so dire that a lockdown cannot be ruled out, even for those vaccinated, the German Health Minister said on Friday, Jens Spahn.

“We are in a national emergency,” he said at a press conference.

The road back to normal is now murky again for Europe, And economists say the impact of a fourth wave of the coronavirus on household budgets will be significant, this at a time when the price of almost everything is skyrocketing.

Voice of america


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