At the same time, inflation in the euro area rose significantly – from 0.6% in November to 1.1% in December. In Germany inflation even stood at 1.7% in December. And unsurprisingly, some are calling for the ECB to put a quick end to its loose monetary policy. In terms of the desired level of inflation, it’s been a long, cold winter.
We are now seeing the first ray of sunshine – that’s good. Is this ray already having a warming effect and does it herald the spring? Is inflation really back? Perhaps one or two more rays of sunshine are needed; they’ll bring a bit more warmth.