Courtesy of Mish.
Fresh on the heels of ECB president Mario Draghi’s Lies In Defense Bond Purchases, Including a Warning of Deflation comes news of an unexpected rise in Eurozone price inflation.
Economists had expected price inflation to drop, instead Eurostat reports Euro area inflation estimated at 2.7% up from 2.6% in August.
Looking at the main components of euro area inflation, energy (9.2% compared with 8.9% in August) is expected to have the highest annual rate in September, followed by food, alcohol & tobacco (2.9% compared with 3.0%), services (2.0% compared with 1.8%) and non-energy industrial goods (0.8% compared with 1.1%).
Euro Area Inflation
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Smokescreens to Print Money
As with the Fed, apparently the ECB does not consider the two key things people need (food and energy) as important. Instead the ECB appears be worried about deflation in non-energy industrial goods.
Appearances are deceiving. All this talk of inflation and deflation is nothing but a smokescreen for the ECB and the Fed to do what they want to do: print money.
Both central banks can and do bend their words at will, to make whatever policy decisions they want.
ECB president Mario Draghi even went so far as to proclaim fighting deflation gave it a mandate to break the treaty under which it was formed.
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