EU Commission raises Eurozone inflation expectations

The European Union (EU) Commission revised its inflation forecasts upwards and its growth forecasts downwards for the Eurozone.

The Commission raised its 2022 Eurozone inflation forecast from 6.1 percent to 7.6 percent, and its 2023 forecast from 2.7 percent to 4 percent.

The growth forecast was reduced from 2.7 percent to 2.6 percent for 2022 and to 1.4 percent for 2023. It was stated that Russia's war created a dark cloud over the European economy.

The report stated that Moscow's actions harmed energy and grain supplies raised prices and undermined confidence.

It is predicted that record high inflation is expected to peak at the end of this year and will decrease gradually in 2023. However it was emphasized that there are downside risks due to the uncertainty of the war.