In view of the high energy prices, the EU Commission expects inflation in the euro area to reach an all-time high this year. On average for the year, inflation is expected to reach 7.6 percent, according to the Brussels authorities’ summer economic forecast on Thursday. In its spring forecast in May, the Commission still assumed 6.1 percent inflation for the euro countries. Growth will therefore remain largely stable this year compared to the last forecast. For the next year, however, the commission corrected its forecasts significantly downwards.
A price increase of 8.3 percent is expected throughout the EU this year instead of 6.8 percent. Inflation is expected to halve in the coming year, at an average of 4 percent in the euro area and 4.6 in the EU.
In terms of economic growth, the EU Commission continues to assume that the EU economy will grow by 2.7 percent in 2022. In the euro area, growth is expected to be 2.6 percent, a slight adjustment from the 2.7 percent forecast in May.