The euro zone's annual rate of inflation rose above the European Central Bank's medium-term target for the first time in more than two years in December, driven by fuel, food, alcohol and tobacco prices, official data showed Friday.Of course, increases in interests will be very, VERY bad news for the cash-strapped PIIGS, and particularly Ireland and Greece, who are now lorded over by 'the Germans', a band of EUnion bureaucrats whose single brief is to do everything to protect the euro from harm.
The figures are likely to fuel concerns that interest rates could rise sooner than expected after ECB President Jean-Claude Trichet warned Thursday that inflation may increase in the short term but should moderate later this year.
A country like Ireland can ill-afford loans at the current interest rates. If the interest rises, the Irish economy will certainly be ruined for years and decades to come.
And where is our intrepid and oh so independent MSM in all this? Did they just forget to relay this bit of rather important news?