ECB inflation overshadows 10 year anniversary

The European Central Bank (ECB) is fighting against the fastest inflation in its 10-year history and a stuttering euro zone inflation economy.

The ECB was founded on June 1, 1998 and is responsible for the euro currency and is supposed to be celebrating its ten year anniversary. However, some analysts argue as to the reason for any celebration as the bank has failed to reach its 2 percent target for nine years.

Speaking at a euro-region meeting with finance ministers and the German Chancellor, ECB’s President, Jean-Claude Trichet, said that this is not a time for complacency through the anniversary.

What has characterized the problem faced by the ECB and the other central banks across the globe, is a surge in oil to a record $135 a barrel which in the euro zone pushed inflation to 3.6 percent during the last month, which is the fastest growth since 1998.

The ECB council member, Klaus Liebscher, said that they will do whatever is necessary to reduce inflation and will use their full mandate in order to meet expectations.

Inflation has also had a knock-on effect as its increase is starting to take affect on the economy as consumer and business confidence is at the lowest level in almost three years.

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