The European Fee expects inflation to greater than halve this yr, regardless of rising costs for key commodities similar to crude oil.
Forecasts point out rising optimism concerning the state of the EU economic system. “We’ve turned the nook following a really troublesome 2023,” the European Commissioner for the Economic system mentioned in an announcement. Paolo Gentiloni forecasts the bloc’s economic system to develop by as much as 1% this yr, however added: “As two wars proceed to rage in our neighbourhood, the dangers of a recession have elevated “.
Tackling rising costs is taken into account the primary concern forward of European elections in June. Greater than two thirds of Europeans imagine the difficulty must be a precedence, in accordance with an unique ballot revealed by Euronews.
In response to the European Fee’s forecasts, inflation within the EU will drop to 2.7% this yr. It peaked at round 10% following the pandemic and the outbreak of Russia’s battle in Ukraine affected the economic system.
Addressing these issues has pressured the European Central Financial institution, which should hold eurozone inflation at 2%, to lift rates of interest by a report quantity. In April, its governing council mentioned the ECB’s coverage would stay restrictive “so long as needed.”
Vitality costs are nonetheless rising, however calmer markets for meals and different items are easing inflationary pressures, the European Fee mentioned. Brussels added that the EU economic system created two million jobs final yr.
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2024-05-25 09:17:52
