Eurozone Inflation Is Now over Target

Inflation rose by 2% in May in the Eurozone for the first time since 2018 (in Germany it rose more, by 2.4%), feeding speculation that the ECB might take a decision to curb it at its board meeting next week. EIR forecasts that it won’t. ECB President Christine Lagarde said recently that the inflation surge is “temporary” and will fade next year. The ECB has also started a discussion to introduce a “flexible” inflation target, to justify continuation of QE and bond purchases.