The increase in inflation continues to be a priority issue for the different Central Banks

Posted on June 1, 2022 We begin June and the focus of attention and concern continues to be inflation and its effects on growth and on the measures to be taken by the Central Banks, which are already beginning to soften their discourse. The Secretary of the Treasury of the United States, Janet Yellen, recognized in an interview with CNN that she was wrong in relation to the evolution of inflation. For his part, President Joe Biden promises in an article published by ‘The Wall Street Journal’ that since this is the highest economic priority, he will not try to influence the decisions of the Federal Reserve, which today begins to reduce its balance. While in Europe, the stock markets were heavily affected by the publication of the inflation data for the Euro Zone, which accelerated to 8.1%, which led investors to expect a more aggressive policy from the ECB. Inflation returned to record levels, driven largely by energy and food prices, although core inflation excluding these prices also rose sharply. The result was widespread falls in the stock markets and in the debt market the sale of bonds prevailed, thus, the Bund rose 7bp to 1.12% and the Spanish 10-year exceeded 2.20%. Euro Zone government bond yields widened sharply again as economic data showed bloc inflation rose more than expected. After the CPI data for Monday in Spain and Germany, yesterday it was the turn of France, Italy and especially the Eurozone, where the preliminary data of the CPI for May presented an interannual growth of 8.1%, exceeding the expectations of the analysts (7.7%) and the figure for the previous period (7.4%). These results increased the fear that the restrictive policy of the Central Banks with greater pressure in their fight against inflation supposes a recession. INFORMATIONTitleThe rise in inflation continues to be a priority issue for the different Central BanksDescriptionWe begin June and the focus of attention and concern continues to be inflation and its effects on growth and on the measures to be taken by the Central Banks, which are already beginning to soften their speech.Author GLOBALCAJA