18 nations within the EU report official inflation charges above 10%. This week the ECB raised charges to 2.00% to “combat” inflation and but nations like Italy are saying the ECB is loopy for conserving charges so excessive

Europe shall be going through larger power inflation + commodities inflation pushed by China’s demand.. folks suppose inflation return to regular quickly. it is time to get up. Stagflation will get so much worse..

— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) December 17, 2022

As soon as core inflation surpasses 4-5%, historical past reveals there’s one efficient technique to sluggish it down.

Elevate nominal charges above core CPI by 50-100 bps.

And maintain coverage tight for some time.

Will Central Banks do it?
Sure.

Is it going to trigger a recession?
Sure.

— Alf (@MacroAlf) December 16, 2022