Reason..

 

Stubborn inflation in Germany and Spain looks set to keep ECB policymakers on high alert. 

German price growth slowed less than expected to 6.4% in August from a year earlier.

Investors believe the price data is likely to tip the balance on the ECB’s governing council in Favour of raising interest rates for a tenth consecutive time at its meeting on September 14, despite growing signs that the bloc is heading for an economic downturn.

The historically high year-on-year inflation rate was mainly driven by the extreme price rises for energy products and food since war started in Ukraine”, said Dr. Ruth Brand, the new President of the Federal Statistical.

Inflation Rate in Euro Area averaged 2.21 percent from 1991 until 2023, reaching an all time high of 10.60 percent in October of 2022.

  Sanctions sanctions and sanctions..