8/1/22, 9:52 AM EU hikes inflation forecast to 8.3% as Ukraine war drives soaring prices
https://www.cnbc.com/2022/07/14/eu-hikes-inflation-forecast-to-7point6percent-as-russia-ukraine-war-fuels-price-increases.html 2/7
The European economy is not seen entering a recession this year, according to the European Commission, but some economists have a
different opinion.
Europa Press News | Europa Press | Getty Images
Inflation will hit 7.6% in the euro zone and 8.3% in Europe this year, according to revised
forecasts, as Russia's invasion of Ukraine puts a dampener on the region's economies.
Thursday's forecasts from the European Commission, the executive arm of the EU, come as
markets monitor inflation prints closely. In the U.S., the consumer price index rose 9.1% on the
year in June, according to numbers released Wednesday — coming in much higher than
economists had expected.
Concerns over record-high price rises are also widespread in Europe, where the latest reading
showed that inflation hit a record rate of 8.6% in the euro zone in June.
The situation is piling pressure both on national governments, which are trying to reduce the
impact of higher prices on households, and the European Central Bank, which is due to meet
next week.
Back in May, the European Commission said it expected inflation in the euro area to hit 6.1% in
2022, before falling to 2.7% in 2023. Now, both forecasts have been revised up to 7.6% and
4%, respectively.
For Europe as a whole, the inflation forecasts have been revised up from 6.8% in 2022 and 3.2%
in 2023, to 8.3% and 4.6% respectively.
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