European Inflation Getting Worse
Moreover, consumer price inflation rose from 2.6% in October to 3.0% in November, according to Eurostat's preliminary "flash" estimate.
Yet despite this surge in both monetary and price inflation, the ECB betrays its legal obligation to hold M3 growth at 4.5% and consumer price inflation below 2% by failing to raise interest rates and by offering "emergency loans" to failed investors.
Meanwhile, monetary crank Sarkozy tries a light version of Mugabe's inflation fighting tactic of government price controls, by pressuring retailers -using unspecified threats- to cut prices. This tactic failed miserably for Mugabe and is likely to fail for Sarkozy as well. In order to obtain lower prices you must rein in money supply growth and/or pass supply-boosting spending- and tax cuts.