Tuesday, January 18, 2011

Higher inflation in Europe and America attacking threat of global inflation

 Analysts believe the dollar weaker commodity prices may move up, exacerbating global inflationary pressures

weaker dollar makes record high commodity prices, global inflationary pressures

years ago part of the shares is expected to soar! Confidential! market institutions will soon be reversed capital flows have changed dramatically! main layout
money is plotting a new emerging market after another moves in the fight against inflation when the inflation risks began in the United States and Europe proliferation. In energy prices rose, driven in December last year, U.S. consumer price index (CPI) increase of the chain since June 2009 reached a new high since. At the same time, the euro zone annual inflation rose in October 2008 also has the highest level. Some analysts said the next few years, countries around the world including the United States is the inevitable trend toward inflation.

the rise of inflation expectations in Europe and America

U.S. Labor Department data released on Friday, last December the U.S. CPI index rose 0.5% qoq increase since June 2009 reached a new high. However, excluding the volatile food and energy prices, core U.S. CPI in December last year, edged up only 0.1%.

throughout 2010, the U.S. CPI to 1.5% increase, down from 2.7% in 2009. U.S. core CPI, the 2010 increase of just 0.8%, significantly lower than the 1.5% set by the Fed to 2% target range. However, inflation has been most concerned about the economic indicators the Fed.

Federal Reserve Chairman Ben Bernanke recently made public the latest U.S. economic position, this year the economy will grow by 3% to 4%. In addition, the U.S. faces deflation risk is significantly reduced.

except the United States, Eurostat data released on Friday showed the euro zone CPI index for December last year increased by 2.2% per annum, from October 2008 reached the highest level since. European Central Bank President Jean-Claude Trichet said the euro area the short term may increase overall inflation pressures, inflation, the central bank will remain vigilant. Some analysts said Trichet's comments suggest it is ready when necessary to raise interest rates to combat inflation.

global threat of inflation hits

Trichet's comments pushed the euro gained strength, the euro into a non-US currencies bounce Meanwhile, the dollar index fell sharply last week, the cumulative dollar index fell more than 2%. Some market participants said that the U.S. economy continues to strengthen the capacity of less than expected, after a weaker dollar, commodity prices may rise further, inflation will worsen the situation.

Currently, inflation has become the biggest emerging market issues and risks. Although the United States to maintain a moderate inflation trends, but in the end of last year, rapidly rising food and energy prices, inflation is expected to gradually warm up. Some analysts said that the recent acceleration in input costs in emerging markets, the recent natural disasters, global emerging countries are also to growing inflationary pressures. At the same time, commodities is a global commodity, the price will eventually be passed on to Europe and the United States, countries around the world to inflation is inevitable.

No comments:

Post a Comment