ECB Bond Buying, Inequality Risks, Food Price Pressures: Eco Day

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Welcome to Thursday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

• The European Central Bank could stop buying bonds as early as next September if inflation looks to have sustainably returned to the official target, Governing Council member Robert Holzmann said
• The new European Commission economic forecasts are set to see euro-area inflation at 2.4% this year and 2.2% in 2022, according to a draft seen by Bloomberg
• One of the most popular strategies for fighting climate change could come at the cost of even greater inequality in the world economy
• U.K. house prices kept rising through October as a lack of new properties on the market outweighed all other factors that are likely to weigh on consumers in the months ahead
• As surging energy prices drove inflation in major economies to multi-decade highs and caught central bankers off guard, the next source of pressure could come from food prices, according to Nomura Holdings Inc
• Surging prices are boosting the case for central and eastern European central banks to continue cooling their economies with aggressive monetary tightening
• As China’s Xi Jinping is set to publish a doctrine this week that sets him up to potentially rule for life, we look back at the hits and misses of his first near-decade in power
• U.S. consumer prices rose last month at the fastest annual pace since 1990, cementing high inflation as a hallmark of the pandemic recovery and eroding spending power even as wages surge
• The market assigning a higher probability to Jerome Powell getting a second Fed term reflects the politics of the Senate and which candidate President Joe Biden thinks is more likely to get approval
• Former U.S. Treasury Secretary Larry Summers said financial markets appear to be anticipating slow growth and low real rates, which will gut central banks’ ability to guide economies
• Finally, check out this week’s Stephanomics podcast, where we what’s really causing the labor shortage

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With assistance from Bloomberg