The EU Commission has raised its forecast for euro inflation for 2022: from 2.2 percent to 3.5 percent on an annual average.
According to a forecast by the EU Commission, inflation in the euro area will be significantly higher this year than previously expected.
In 2022, euro inflation is estimated to reach a peak of 3.5 percent on an annual average, according to the EU Commission’s annual winter forecast on Thursday. In the autumn forecast, the Brussels authorities had still assumed 2.2 percent inflation for 2022.
An inflation rate of 1.7 percent is then expected next year. That would then be below the 2 percent mark targeted by the European Central Bank (ECB). Across the EU, inflation is estimated to reach 3.9 percent this year and fall to 1.9 percent in 2023.
Inflation has remained at a comparatively high level for months, mainly driven by high energy prices. The ECB aims to keep inflation close to 2 percent. So far, however, it has not fundamentally changed its monetary policy despite high inflation.
The commission on Thursday also lowered its expectations for EU economic growth for 2022 to 4 percent, compared to the 4.3 percent predicted in the autumn. This is mainly due to increased corona infections, high energy prices and supply chain bottlenecks, the statement said. The Commission also cited “geopolitical tensions in Eastern Europe” as risks to economic growth and inflation. In 2023, growth in the EU is expected to drop to 2.8 percent. The eurozone economy is estimated to grow 4 percent this year and 2.7 percent next year.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
