Iran Press/ Europe: German inflation unexpectedly accelerated this month, following a trend already seen in France and Italy that will increase pressure on the European Central Bank to raise interest rates even as a recession looms, Bloomberg reported.
Analysts polled by Reuters had forecast 10.9%, unchanged on the previous month.
Inflation in Italy, meanwhile, surged to 12.8% -- way ahead of all estimates. France surpassed expectations, too, with a 7.1% advance. Spain was the only major euro-area nation to see price pressures ease. Data for the 19-nation bloc are due Monday.
The figures are likely to feed the ECB’s enthusiasm to confront inflation that’s five times its 2% target. Officials on Thursday doubled their main rate to 1.5%, the highest in more than a decade. But with Europe at risk of a recession, the ECB dropped an earlier reference to rate increases continuing for “several meetings,” saying simply it expect borrowing costs to be raised “further.”
The Ifo economic institute warned on Friday that the full effect of inflation had not yet reached consumers, even as its survey showed a slightly lower number of companies in Germany planning price hikes in October.
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