7.6 percent in the euro area
The EU Commission expects record inflation in 2022
07/14/2022, 11:08 am
The war in Ukraine and the associated energy crisis are weighing on the European economy. This is having a massive impact on consumer prices: the EU Commission is forecasting a peak in the inflation rate for this year.
In view of the high energy prices, the EU Commission expects inflation in the euro area to reach an all-time high this year. On average for the year, inflation is expected to reach 7.6 percent, according to the Brussels authorities’ summer economic forecast. In the case of Germany, the Commission even expects a value of 7.9 percent.
In its spring forecast in May, the Commission still assumed 6.1 percent inflation for the euro countries. EU Economic and Monetary Affairs Commissioner Paolo Gentiloni sees the consequences of the war at the gates of the EU as a driver of development: “Russia’s baseless invasion of Ukraine is continuing to send shock waves through the global economy.” This would upset energy and grain supplies. As a result, prices rose and confidence suffered, the Italian emphasized.
In its summer forecast for this year, the Brussels authorities only expect growth of 2.6 percent in gross domestic product (GDP). In the spring she had estimated 2.7 percent. In 2023, only a meager plus of 1.4 percent should come out – instead of the previously expected 2.3 percent.