Inflation: Euro zone at 9.1 percent inflation rate

Credibility is the central banker’s hardest currency. It is the indispensable prerequisite for the functioning of a monetary system that is based solely on trust. Trust that the central bank will use its undisputed great power and toolbox to keep price developments under control.

This confidence has been disrupted, as can be seen in view of inflation dynamics measuring almost five times the ECB target.

In August, the inflation rate in the euro zone was 9.1 percent. And it seems only a matter of time before the symbolic double-digit inflation rate is exceeded. In individual countries such as Spain, Belgium and above all in the Baltic States, where inflation rates are now in excess of 20 percent, the time has come.