Euro Area Confronts New Shocks Amid Rising Inflation Concerns

Inflation is weighing on people's everyday lives once again as new shocks hit the euro area.

The European Central Bank (ECB) has adapted to this shock-prone environment in two ways.

First, it made its monetary policy framework more transparent by laying out its reaction function, the factors that the Governing Council uses to make decisions.

Despite inflation concerns, personal income in the US increased $66.6 billion (0.2 percent at a monthly rate) in August, according to estimates released by the U.S. Bureau of Economic Analysis (BEA).