The mood in the bond markets is negative as the release of the minutes of the latest ECB Governing Council meeting showed that inflationary pressures are more severe.
The European Central Bank’s chief economist, Philip Lane, estimated that inflation would stay off target for longer than previously expected. He said the ECB’s September 2022 forecast showed a significant upward revision to inflation in the period up to the third quarter of 2023, but not beyond that point.
Taking into account these data, the chief economist of the European Central Bank suggested that the size of the interest rate increase should be 75 basis points, in order to preload the transition from a very favorable level of interest rates to levels that ensure the return of inflation in a timely manner. Its mid-range target is 2%.
According to the minutes, several central bankers agreed with Mr. Lin’s positions, as they voted in favor of a 75 basis point increase proposal.
In HDAT, transactions amounting to 8 million euros were recorded, of which 6 million euros relate to purchase orders. The 10-year bond yield is 4.74% from 4.72% at Wednesday’s close, versus 2.08% for its German counterpart, taking the spread to 2.66% from 2.71%.
In the foreign exchange market, the euro was lower against the dollar, with the European currency trading at $0.9821 in the early afternoon from $0.9859 at the open market. The indicative rate of the euro-dollar exchange rate announced by the European Central Bank was $0.9860.
In Greece, inflation in September, as announced by ELSTAT, was 12.1%. Energy prices increased by 40.8%, food prices by 11.8%, durable goods by 5.6%, and services by 4.3%.
Eurostat: Big increases in prices for coffee, sugar and fresh milk
Significant increases in the prices of coffee (+16.9%), sugar (+33.4%) and fresh milk (+24.3%) were recorded in August 2022 in the European Union, compared to August 2021, according to data from the European Statistical Service (Eurostat). Released on Thursday.
In particular, August 2022 data show that the price of coffee in the EU was on average 16.9% higher than in August 2021. The largest increase in the price of coffee in the EU was recorded in August 2022 in Finland (+43.6%) In Lithuania (+39.9%), Sweden (+36.7%), Estonia (+36.4%) and Hungary (+34.3%).
The price of fresh whole milk increased by an average of 24.3% between August 2021 and August 2022, while the price of fresh low-fat milk increased by 22.2% during the same period. The highest annual increases in whole milk prices among EU member states were recorded in Hungary (+51.7%), Lithuania (+46.8%), Croatia (+43.5%), the Czech Republic (+43.3%), Latvia (+40.1%) and milk Low fat in Lithuania (+50.2%), Croatia (+41.2%), Estonia (+38.9%), Germany (+30.6%) and Hungary (+30.1%).
The highest annual inflation was reported in August 2022 for sugar (+33.4%), with a notable rise in Poland (+109.2%), followed by Estonia (+81.2%), Latvia (+58.3%), Bulgaria (+44.9%) and Cyprus (+43.2%).
Eurostat data shows that all three items (coffee, milk and sugar) registered price increases in all EU member states.
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