Inflation Is A Priority: ECB Chairman

Inflation is a priority according to ECB Chairman Jean-Claude Trichet.  Following the G10’s regular meeting, ECB Chairman of the European Central Bank, Jean-Claude Trichet revealed that fighting inflation would be a priority for the world’s leading economies this year and he intends to tackle inflation in 2008.  He also commented that “the spike in oil, commodity and food prices are having an effect on inflation”.  

The funding auctions made by a number of central banks late last year has been hailed a success by the G10 and these reduced rate short-term auctions will continue until they are no longer needed.  

Our view

Inflation is always a priority.  However, given increases in fuel and borrowing, we suggest inflation may be more difficult that expected.  We suggest that many economies may even slip into recession as inflation takes hold.  Gordon Brown is not as clever as your all though is he? He simply rode an easy period for inflation and interest rates as Chancellor.

Useful links:

Request expert financial advice now

Purchase guidance on financial planning in the Money Shop 

Back to News Summary