2023-06-24 09:00:00
Reserved for subscribers
CHRONIC. Inflation would continue in 2024 due to wage increases. Then the European Central Bank could not stop its interest rate hikes.
By Patrick Artus* A person is shopping at the supermarket. © RICCARDO MILANI / Hans Lucas / Hans Lucas via AFP Published on 06/24/2023 at 09:00
The European Central Bank (ECB) continues to forecast inflation excluding energy and food of 4.6% in 2023 and 2.5% in 2024. However, inflation excluding energy and food is still 6.8% in May 2023 , by 7.2% also during the first five months of 2023. The disinflation forecast by the ECB, and by other forecasters, is probably much higher than the disinflation that will actually occur.
Indeed, the euro zone is still characterized by a situation of excess demand for goods and services, and insufficient supply of goods and services. This can be seen in the surveys which focus on the causes of the slowdown in production, and which show the responsibility for the difficulties in hiring companies and the insufficiency of equipment and…
I subscribe
#happen #eurozone #inflation #close #start