(snip)" The ECB has already signaled that it will raise interest rates for the seventh time since late 2005 when policy makers meet March 8, judging that the pace of economic growth is increasing inflation risks. The bank expects inflation to accelerate in the second half of the year.
Services growth slowed in Germany and accelerated in France and Italy, today's report showed.
German Slowdown
German retail sales slumped 5.1 percent in January as consumers cut spending after Chancellor Angela Merkel increased VAT to 19 percent to 16 percent.
Deutsche Telekom AG, Europe's largest telephone company, on March 1 posted its first loss in more than two years after half a million German customers defected and the costs of cutting jobs soared. "(snip)
duhhh, increasing the 'sales tax' percentage from 16 to 19 percent wouldn't have ANYTHING to do with increasing inflation now, would it ?



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