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The European Central Bank HQ in Frankfurt, Germany - a country with an aversion to inflation due to historical reasons. Inflation in the eurozone now stands at a historically-high five percent (Photo: ECB/Flickr)

Analysis

An inflation surge, but (some) economists warn on raising rates

Rising prices have fuelled debate among economists about inflation risk - with some arguing that central banks should increase interest rates, while others urge caution.

On Wednesday (26 January), the US Federal Reserve announced it is likely to hike interest rates in March. The Bank of England raised rates in December and has announced further tightening for February.

Inflation in the eurozone currently stands at a historically-high level of five percent.

So far, the Eur...

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Author Bio

Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.

The European Central Bank HQ in Frankfurt, Germany - a country with an aversion to inflation due to historical reasons. Inflation in the eurozone now stands at a historically-high five percent (Photo: ECB/Flickr)

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Author Bio

Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.

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