The European Central Bank (ECB) responded by hiking interest rates to their highest level in forty years in an effort to curb demand, claiming there was a danger that rising consumer prices would lead to higher wages and a spiraling inflation.
The discussion will pick up again at the ECB’s subsequent policy meeting, when the bank has pledged to hike rates to their highest level since the height of the 2008 financial crisis.
ECB and Germany’s Info institute surveys show that businesses expect lesser price increases as the outlook for costs and demand becomes less certain.
While France and Spain are discussing similar measures, certain European nations, including Greece, have proposed legislation to reduce inflation in the price of necessities.