Interest rate increase puts families under duress

The Correio da Manhã complains that the ECB's plans to raise the key interest rate will place a heavy burden on consumers: "The price of goods and services is rising with each month that passes. Some economists describe this inflation as the hidden tax that is eating away at families' buying power. The European Central Bank is desperately fighting against this phenomenon, but ECB President Jean-Claude Trichet is about to lose the battle. Inflation is at four percent in the Eurozone. ... Trichet has said that there is a risk that inflation could explode out of control, and this is why he will announce an increase in the base interest rate today - a decision that will lead directly to an increase in the mortgage interest paid by millions of families who are already struggling with rising food and fuel prices from month to month. Starting today Europe's families will have even less money. If we continue like this things will only get more and more difficult, Trichet!"

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