The EU raised its inflation forecast in the eurozone due to a sharp rise in base prices — Bloomberg
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The key factor in raising the inflation forecast was a three-quarter percentage point increase in the Commission’s assessment of the so-called core inflation, which excludes volatile elements such as food prices. This is reported by Bloomberg.
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Forecasts
It is noted that the forecasts emphasize the challenge facing the politicians of the European Central Bank.
They increased the basic cost of borrowing by 375 basis points, trying to curb inflation, and now they can break up with the Federal Reserve System of the United States, as they assume a further increase in rates against the background of fears that price growth will be delayed.
Read: Currency forecast: inflation in the EU decreased less than expected
“Core inflation will gradually decline as profit margins absorb higher wages and tighter financing conditions are effective in cooling demand,” writes Bloomberg. — It is expected that the constant high price pressure on services in combination with a slow decrease in the prices of processed food and goods will support core inflation at a high level.
The EU’s forecast for the growth of base prices this year is half a percent higher than the ECB’s forecast, published in March. In the next hour, it is only 0.1 percentage points lower.
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Editor of the news feed Yaroslav Holoborodko Writes on the topics: Macroeconomics, stock market, cryptocurrency
Source: Ministry of Finance
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