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The Bank of England has forecast further increases in inflation, to 0.5% by the summer.
Italy recorded one of the biggest jumps in joblessness, to 8.3 percent from 8 percent, as well as one of the biggest increases in inflation, to 3.8 percent from 3.6 percent.
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The 0.5 percentage point increase in inflation to a five-month high is "disastrous" for savers and pensioners, and experts warn inflation could rise to 3% in the next few months.
All of this on top of an economy that is already at 4.9% unemployment and showing sufficient increase in inflation to make a cautious Fed likely to hike rates in early December".
There is no doubt what Keynes would advocate now: a government-sponsored increase in demand co-ordinated across as many countries as possible and an acceptance of a temporary but closely managed increase in inflation to reduce the real value of debt.
Put another way, the standard Taylor rule makes no distinction between increases in inflation expected to be temporary and those expected to be longer lasting.
In practice, however, policymakers have responded less to increases in inflation that they expect to be temporary, a reasonable strategy given that monetary policy affects inflation only with a significant lag.
There is no doubt some concern in these countries that the link between emerging market growth and commodity prices has become too tight, such that the only way to limit a damaging increase in inflation is to limit growth.
That's unfortunate given the background increase in inflation due to soaring energy prices.
Bond investors, however, seemed a bit more positive, in part because Fed officials said that the current increase in inflation appeared to be partly a result of "transitory factors".
In particular they examine how the "Taylor Principle", under which interest rates respond more than proportionately to increases in inflation, can generate multiple equilibria.
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