Inflation in the euro area will average 7.6 percent per year, according to the European Commission’s summer forecast. In the spring forecast, the inflation rate was 6.1 percent.
Against the background of the war in Ukraine and high energy prices, the European Commission expects record high inflation in the eurozone – an average of 7.6 percent per year. This is stated in the summer forecast of the EU Commission published on Thursday, July 14. In the spring forecast, in May, the inflation rate was 6.1 percent.
In the European Union as a whole, experts predict a price increase of 8.3 per cent – instead of the previous 6.8 per cent. At the same time, in 2023, inflation, according to the European Commission, should be almost half: at an average level of 4 percent in the euro area and at 4.6 percent in the EU as a whole.
Regarding economic growth, the European Commission continues to assume that the EU economy will grow by 2.7 percent in 2022. The euro area is expected to grow by 2.6 percent, which is slightly lower (2.7%) compared to the corresponding figure in the forecast of Mayo.
However, for 2023, the EU Commission has changed its predictions downwards. Growth is expected to be 1.5 per cent overall in the European Union and 1.4 per cent in the eurozone. In May, economists expected 2.3 percent in both the EU and the euro area. One of the reasons for the marked decline in predicted values remains the situation in energy markets.
Source: DW
Earlier, German Chancellor Olaf Scholz urged Germans to be prepared for prolonged inflation.
The IMF warns of a global recession
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Source: korrespondent
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