Wednesday, November 28, 2007

Euro-area inflation rising fast

Euro-Area Inflation May Reach 3 percent.....

Nov. 28 (Bloomberg) -- Inflation in the euro area may accelerate to a six-year high of 3 percent this month, increasing pressure on the European Central Bank to raise interest rates, economists said after prices jumped in Germany.

Banks including Barclays Capital and Dekabank today revised up their November inflation forecasts for the euro region to as high as 3 percent after soaring oil and food prices pushed the rate to 3.3 percent in Germany, Europe's largest economy. Before the German figures, economists were forecasting a euro-region rate of 2.7 percent after 2.6 percent in October.