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EURO INFLATION

Europe’s inflation problem is set to cause distress in Ireland and other debt-laden nations. The European Central Bank (ECB) is expected to raise its rate – which is the base rate for banks who lend money to consumers – from a record low of 1%. After keeping the rate steady for two years, the ECB may announce a quarter-point rise in the rate to 1.25% on Thursday to control inflation in the larger Eurozone area now running at 2.6% due to runaway commodity prices.

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