Anyone else notice that every single bad economic statistic is ALWAYS reported as "unexpectedly"!?!
Housing starts declined in September...unexpectedly.
The sun rose in the east...unexpectedly.
What kind of reporting idiots call price inflation "unexpected" following massive bailouts and QE!?!
As Sinclair would say...MOPE is reaching SPIRITUAL LEVELS!!!
Eurozone inflation has surged unexpectedly to a three-year high of 3 per cent, adding to the dilemma facing the European Central Bank as an escalating debt crisis pushes the region towards recession.
The acceleration weakened the case for an ECB interest rate reduction at its meeting next week, although the euro’s monetary guardian is expected to press ahead with measures to provide extra liquidity to eurozone banks. Eurozone unemployment, meanwhile, saw a surprise fall in August.
With next Thursday’s interest rate-setting meeting the last to be chaired by Jean-Claude Trichet, whose eight-year term as president ends on October 31, it will be harder for him “to bow out with a cut”, said Julian Callow, European economist at Barclays Capital. Eurozone inflation could rise further in October, he warned, before falling later. The ECB aims to keep inflation “below but close” to 2 per cent over the medium term.
September’s inflation rate – the highest since October 2008 – was driven up by clothing prices and energy costs. August’s inflation rate was 2.5 per cent.
However, the latest data did not close the door on an early interest rate cut. The ECB expects inflation to decelerate rapidly next year – the more relevant time horizon for its interest rate decisions.