{"id":1907763,"date":"2023-03-31T09:57:41","date_gmt":"2023-03-31T13:57:41","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/stubborn-inflation-keeps-ecb-on-course-for-more-rate-hikes\/"},"modified":"2023-03-31T10:03:56","modified_gmt":"2023-03-31T14:03:56","slug":"stubborn-inflation-keeps-ecb-on-course-for-more-rate-hikes","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/stubborn-inflation-keeps-ecb-on-course-for-more-rate-hikes\/","title":{"rendered":"Stubborn inflation keeps ECB on course for more rate hikes"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fstubborn-inflation-keeps-ecb-on-course-for-more-rate-hikes%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1907763&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>\n<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p>By Francesco Canepa<\/p>\n<p>The drop in inflation of the euro zone in March was the largest on record; however, \u201ccore\u201d prices grew faster, which strengthens the case for more interest rate hikes by the European Central Bank (ECB).<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<\/p>\n<p>The ECB has not committed to further rate hikes following a record streak of increases. Instead, the bank will depend on whether the current turmoil in the banking sector subsides and on data, including underlying inflation, which excludes volatile prices such as food and energy. <\/p>\n<p>The data released on Friday showed that underlying inflation grew to a new record high this month, even as the broader headline figure fell sharply and consumers became more cautious.<\/p>\n<p>Commerzbank economist Christoph Weil said, \u201cThe pressure on the ECB to continue raising interest rates remains high.\u201d<\/p>\n<p>In March, consumer prices in the euro zone rose by 6.9%, indicating the largest drop since Eurostat began collecting data in 1991. However, the fall was mainly due to lower energy prices compared to March last year when they had surged in the wake of Russia\u2019s invasion of Ukraine.<\/p>\n<p>A measure known as core inflation, which excludes energy and food prices and is a better gauge of the underlying trend, accelerated to a new all-time high of 7.5% from 7.4% in February.<\/p>\n<p>Reuters analysts had expected headline inflation in the 20 countries that share the euro to come in at 7.1% and core inflation at 7.5%. <\/p>\n<p>However, data on Friday from the two largest euro zone economies pointed to a softening of consumers\u2019 ability to spend, which is ultimately the main driver of price growth.<\/p>\n<p>French consumer spending fell unexpectedly in February, as did German retail sales, while a European Commission survey published a day earlier showed that households want to save more.<\/p>\n<p>German import prices also registered their smallest increase in two years in February as energy prices eased.<\/p>\n<p>Dirk Schumacher, an economist at Natixis, said, \u201cThat is, all else equal, disinflationary and it argues that the ECB doesn\u2019t have to do much more.\u201d<\/p>\n<p>Money-market prices show that investors expect a 25-basis-point rate hike by the ECB at its next meeting on May 6, followed by another one or possibly two of the same size over the summer.<\/p>\n<p>Euro zone unemployment remained stubbornly low at 6.6%, strengthening the case for more tightening. Policymakers fear that low unemployment could give workers greater bargaining power in salary negotiations and lead to higher wage increases that could perpetuate high inflation.<\/p>\n<p>German bank Deka economist Ulrich Kater said, \u201cThis sediment of inflation will not be flushed out for two or three years, and will require further moderate interest rate increases by central banks, regardless of the current banking stress.\u201d Several ECB policymakers, including chief economist Philip Lane, have also said recently that more increases in borrowing costs are likely needed to bring inflation back to the bank\u2019s 2% target.<\/p>\n<p> (Additional reporting by Frank Siebelt; Editing by Catherine Evans)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/stubborn-inflation-keeps-ecb\/attachment\/file-photo-customers-shop-in-a-supermarket-in-nice-2\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>A young independent investigative journalist, Troy Smith, who criticizes the Uniparty has a message for young Americans saying \u201cyou don\u2019t have to seek approval.\u201d<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The Pentagon, DOS and USAID give lawmakers the Ukrainian Government\u2019s word that no funds are being misappropriated. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Drug shortages in the US are on the rise. And the WHO revises its Covid vaccine advice saying healthy kids and teens are considered low risk and may not need the vaccine.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The America First Legal Foundation opens up a Freedom of Information Act investigation into the Manhattan District Attorney\u2019s office. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>(Reuters) -Meta Platforms Inc said on Thursday it would change the legal basis on how Facebook and Instagram use personal data to\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By Diane Bartz WASHINGTON (Reuters) -The tech ethics group Center for Artificial Intelligence and Digital Policy is asking the U.S. Federal Trade\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By Kanishka Singh WASHINGTON (Reuters) \u2013 The United States and some of its partner countries on Thursday called for strict domestic and\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By Foo Yun Chee BRUSSELS (Reuters) -Alphabet\u2019s Google Cloud has accused Microsoft of anti-competitive cloud computing practices and criticised imminent deals with\u2026 <\/p>\n<\/p><\/div>\n<p><\/body><\/html><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Francesco Canepa FRANKFURT (Reuters) -Inflation in the euro zone dropped by the most on record in March but \u201ccore\u201d price growth accelerated, which is likely to strengthen the case for more interest rate hikes by the European Central Bank. After a record streak of rate rises, the ECB has refrained from committing to more<\/p>\n","protected":false},"author":66,"featured_media":1907764,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[19391,21081,6367,5708,6366],"class_list":["post-1907763","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann","tag-stubborn","tag-ecb","tag-hikes","tag-inflation","tag-rate"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1907763","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1907763"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1907763\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1907764"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1907763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1907763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1907763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}