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Inflation Across the Euro Area Seen Peaking in the Fourth Quarter

Inflation Across Euro Area Seen Peaking in Fourth Quarter

Inflation Across the Euro Area Seen Peaking in the Fourth Quarter

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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