Inflation in eurozone forecast to hit 4.8% amid soaring energy prices
euronews.comInflation will remain high across the eurozone until at least the end of the summer, Brussels has warned.
Soaring energy prices and supply chain disruptions are being blamed.
In the first quarter of this year, inflation will hit 4.8% and stay above 3% until the third period, according to the latest economic forecasts from the European Commission. The bloc will have to wait until the fourth quarter of 2022 to see inflation fall to 2.1%.
This prediction is based on the assumption that supply bottlenecks will gradually ease and gas prices will drop as temperatures turn warmer and geopolitical tensions between Ukraine and Russia are resolved.
"Uncertainty will remain elevated," said Paolo Gentiloni, EU commissioner for the economy.
"An acceleration of global inflation could entail a faster-than-anticipated tightening of monetary policy, with repercussions on global financing conditions and demand."
The news comes on the heels of the January reading, which showed inflation hitting 5.1% on an annual basis, an all-time high figure mainly driven by increasingly expensive energy supplies, which recorded an eye-popping 28.6% price increase.
Unprocessed food, such as fresh fruit and vegetables, are also contributing to the inflationary pressure as a result of higher costs for fertilisers.
Overall, the European Union will have to deal with a 3.9% average inflation rate throughout the whole year, a dramatic change after a decade below the 2% limit.
The countries that are set to suffer the most pronounced prices hikes are Poland (6.8%), Lithuania (6.7%) and Slovakia (6.4%). On the other end, Malta (2.1%), Portugal (2.3%) and Denmark (2.5%) will register softer upticks, but still above the ECB benchmark.
Gentiloni added inflation in the
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