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Euro zone: inflation goes up

Le 28 january 2010

+ 0.9% in one year. In December 2009, inflation in the euro zone accelerated, reaching its highest level for ten months, according to Eurostat. The increase in consumer prices is still far from the 2% target set by the European Central Bank (ECB), guardian of price stability in the euro zone. The increase in inflation rates, following five consecutive months of the opposite trend, is notably accounted for by energy prices, which fell one year ago after flaring up in spring and summer 2008. The euro zone came out with a trade surplus of 4.8 billion euros in November, a drop compared with the previous month where the figure reached 6.6 billion euros, whilst concerns about the impact of the strength of the euro are growing. The euro’s strong exchange rate constitutes “a potential risk” for the diffident European economic recovery, warns the European Commissioner in charge of Economic Affairs, the Finnish Olli Rehn. Germany has achieved the highest trade surplus, ahead of Ireland, the Netherlands and Belgium. On the other hand, the United Kingdom has scored the strongest deficit, followed by France, Spain, Greece and Portugal.

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