German inflation a problem for ECB

INCREASING inflation in Germany fuelled by cheap ECB money is creating a problem for the bank, which meets today in Helsinki.

The ECB increased its rate for the first time in almost two years in April and as inflation continues to rise it is expected to at least signal a second increase in June, if not sooner.

But Germany’s exceptionally strong growth combined with the low ECB interest rate is creating problems for its economy similar to those experienced by Ireland in the past.