On the other hand, inflationary pressures, which mainly stem from sharply rising energy and food prices, are increasing on a worldwide scale. They pose a particular challenge to some developing countries, but also give rise to concern in industrialised countries. Against this backdrop, the US housing market, and with it the US economy as a whole, has deteriorated further over the past few months.
Consequently, economists and financial market participants alike are – once again – asking themselves if Europe will be able to decouple now that the US outlook has substantially deteriorated.