41. Accelerating inflation is pushing salaries higher, because wage negotiations are based on an annual comparison of inflation rates. 42. Accelerating inflation leads to higher interest rates, which crimp economic growth, consumer spending and corporate profit by increasing borrowing costs. 43. Accelerating inflation remains a danger, Issing said, especially in light of large public debts in many countries. 44. Accelerating inflation could push the central bank to increase interest rates to slow the economy. 45. Accelerating inflation erodes the value of bond interest and principal. 46. Accelerating inflation erodes the value of fixed-interest securities, such as bonds. 47. Accelerating inflation in Germany rattled investors across Europe. 48. Accelerating inflation in that country often hurts the dollar by eroding the value of dollar-denominated assets. 49. Accelerating inflation leads to higher interest rates, which increase borrowing costs, dampen consumer demand and crimp corporate profit and share prices. 50. Accelerating inflation may push the central bank to boost interest rates to slow the economy and temper demand for goods and services. |