The publication of the latest ECB statistics in the 19 eurozone countries reveals a new rise in inflation: from 0.9% year-on-year in February 2021, inflation increased to 1.3% year-on-year in March 2021.
However, the ECB is not more worried than necessary, considering that this increase is linked to the health crisis… and should only be temporary. But in the meantime, prices are rising, which is not particularly beneficial for consumers.
The ECB’s lack of concern is explained by the core inflation, that is inflation without the most volatile products, which is slowing down: excluding food and energy, inflation was 1% in March 2021 compared to 1.2% the previous month, and even removing tobacco and alcohol, it falls to 0.9% year-on-year in March 2021.
If the ECB estimates that inflation in 2021 could even exceed the 2% threshold, for French savers who loved putting money into tax-free savings accounts, it could be a huge loss.
The interest rate on these savings accounts has been only 0.5% per year for years.
