Inflation Across the Euro Area Seen Peaking in the Fourth Quarter

(Bloomberg) -- Euro-area inflation will peak at 3.2% in the fourth quarter, before slipping back below 2% by mid 2022, according to Bloomberg’s latest survey of economists. Those forecasts support European Central Bank President Christine Lagarde’s comments last week that the factors driving inflation higher at the moment -- including energy costs and supply chain bottlenecks -- are still expected to be temporary. The ECB is closely watching for significant wage increases that would challenge this assumption, she said. 

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