While inflation in Spain continues on an uneven but downward path – the lowest level of 2022 in the entire European Union – underlying inflation continues to rise rapidly in our country and throughout the eurozone. This divergence defines an unstable region that worries monetary authorities – and a lot. While the European Central Bank raised the interest rates by 50 basis points to 3% in its last meeting, the hardening of its speech points to new and strong increases, perhaps up to 3.75 before the summer, depending on the underlying behavior of inflation. Much greater than initially anticipated economic vigor on both sides of the Atlantic (despite the fact that, for example, growth is already close to 5% in the US), as well as a possible recovery in demand in China – after a determined winter – in response to COVID with a looser policy – this includes this relatively amicable concern about employment, though more worrisome in terms of credit and debt. In short, macroeconomics must be tamed to make the small-scale economy viable, not just the commercial economy.
Source: Informacion
Dolores Johnson is a voice of reason at “Social Bites”. As an opinion writer, she provides her readers with insightful commentary on the most pressing issues of the day. With her well-informed perspectives and clear writing style, Dolores helps readers navigate the complex world of news and politics, providing a balanced and thoughtful view on the most important topics of the moment.