Skip to main content

Inflation fell in Germany.

 Inflation in Germany and Spain fell in November, prompting a rally in eurozone government bonds as investors bet that price growth in the bloc had peaked and the European Central Bank would shift to smaller interest rate rises.A slowdown in energy and services prices helped inflation in Germany to fall in line with expectations to 11.3 per cent in the year to November, down from a 71-year peak of 11.6 per cent in October, according to data from the country’s federal statistical agency yesterday.Meanwhile, food prices rose in Germany at a faster pace of 21 per cent, and rental prices also accelerated slightly to 1.9 per cent.

Carsten Brzeski, head of macro research at ING Bank, said he was «still a bit cautious about calling this peak inflation», saying there were still significant price pressures for companies to pass on to consumers that could lead to another increase in inflation before February.

But he said eurozone inflation was likely to fall for the first time in 17 months when November price data are published today, making it less likely that the ECB will raise rates by 0.75 percentage points for the third consecutive time it meets in two weeks.

US inflation also fell in October, and global data indicators suggest that this year’s rampant global inflation has peaked.

«It’s looking likely that we’ve seen the peak,» commented Peter Schaffrik, chief European macro strategist at RBC, a bank, adding that even a slow decline in eurozone inflation should be sufficient to halt the sell-off that has swept through the region’s bond markets this year.

www.sba.tax

Labels:

Comments

  1. Jessie30 November 2022 at 18:34

    I also think this is not peak inflation in Germany. Just give it 3-4 more months. It's going to get worse before it gets better.

    ReplyDelete

Post a Comment

Cloud Bookkeeping

Google has launched its Bard chat­bot.

  Google has launched its Bard chat­bot in a move to rival OpenAI’s pop­u­lar Chat­GPT, as it seeks to make up lost ground in the race to com­mer­cial­ise gen­er­at­ive arti­fi­cial intel­li­gence tech­no­logy. Google said that Bard, which provides answers to text­based ques­tions, will be run sep­ar­ately from its Google Search engine. In recent weeks, gen­er­at­ive AI has also been integ­rated into widely used pro­ductiv­ity applic­a­tions, such as Google’s Work­space includ­ing Google Docs and Gmail, and Microsoft’s Office 365 soft­ware, as well as into pop­u­lar apps such as Duolingo, allow­ing mil­lions of people to start inter­act­ing with the tech­no­logy. «We want to get feed­back and gradu­ally phase up the num­ber of people who have access to Bard, and the reason for that is we want to be able to test and learn from that before we roll it out very widely,» said Zoubin Ghahramani, vice-pres­id­ent of Google Research. Bard is built on top of Google’s AI tech­no­logy known a...
3 comments
Read more

HS2 cost cuts new routes and add delays.

 Trans­port depart­ment offi­cials have begun work on «Project Sil­ver­light» sug­gest­ing the high­speed rail scheme might face four addi­tional years of delay. The planned High Speed 2 rail line faces fur­ther delays of up to four years and more cuts to the project under plans being drawn up by min­is­ters to rein in its bal­loon­ing costs. The extra delays to the coun­try’s biggest infra­struc­ture project would mean that it would not be com­pleted until as late as 2045 — 12 years after ori­gin­ally planned. «This is a func­tion of infla­tion; we are hav­ing to find huge sav­ings because the cost of everything the depart­ment is already doing will have become so much more expens­ive by then,» said one gov­ern­ment offi­cial. In Octo­ber, the FT repor­ted that the Treas­ury had asked HS2’s man­age­ment team to identify poten­tial cuts or «scope reduc­tions» to the high-speed line. Trans­port depart­ment offi­cials have sub­sequently begun work on Project Sil­ver­light aimed at fi...
4 comments
Read more

Doubt on CS's collateral.

  Credit Suisse provided an emergency $140mn loan to Greensill Capital based partly on invoices to companies that deny ever doing the business stated on the documents. The Swiss bank provided the loan in October 2020, less than five months before the collapse of Greensill, a supply chain finance firm that counted former British prime minister David Cameron as a senior adviser. Invoices issued by metals magnate Sanjeev Gupta’s Liberty Commodities and sold to Greensill formed part of the collateral for the loan, according to documents seen by the Financial Times and people familiar with the transaction. Yet several of the parties named on the invoices have told the FT they did no business with Liberty. GFG has consistently denied any wrongdoing. Credit Suisse’s loan had a clause dictating that the collateral value had to be equal to or greater than the $140mn borrowed. The terms of the debt agreement only allowed invoices on Green-sill’s balance sheet to count towards this tally if t...
2 comments
Read more