Wednesday, April 04, 2012

Draghi of the ECB says Euro Zone inflation will average 2.0%

The headline is direct from the ECB press conference I listened to with my own ears and watched with own eyes on TV this afternoon. No kidding - such is the target and while inflation is presently 2.6% in the Euro Zone, Draghi asserts it will moderate to the price stability target, the ECB's number one mission in life, of 2.0% next year.

OK so far so good, it is still merely a target after all, but now comes the real lulu - none of the Euro Group countries, according to Signor Draghi, will vary from 2.0% at all. In other words it is not an average - more an absolute.

Now look at this chart on present Euro Group inflation from Acting Man, linked here:

If the ECB can apply standard inflation of 2% across the Euro Group from next year, you might think they would exercise their apparently magical powers to ease the unemployment crisis represented in the chart above, actually happening this very day - where in Greece a 77 year old pensioner committed suicide in front of the Parliament controlled by an EU appointed puppet PM, himself a VP of the ECB!

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