While central banks on both sides of the Atlantic can certainly be blamed for not having spotted the current price surge early enough, that is no reason to lump together the United States and the eurozone. The inflation outlook for the US is fundamentally worse, for three reasons.
PARIS – Eurozone consumer prices increased by 5% year on year in December, while the number of Google searches for “inflation” has recently risen threefold in Germany and tenfold in France. So, at first glance, it is difficult to avoid the impression that Europe – like the United States, where annual price growth has hit 7% – will have a tough time taming the inflation dragon.
PARIS – Eurozone consumer prices increased by 5% year on year in December, while the number of Google searches for “inflation” has recently risen threefold in Germany and tenfold in France. So, at first glance, it is difficult to avoid the impression that Europe – like the United States, where annual price growth has hit 7% – will have a tough time taming the inflation dragon.