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Peak Price Panic in the Euro Area Will Fade on Energy

Peak Price Panic in the Euro Area Will Fade on Energy

Peak Price Panic in the Euro Area Will Fade on Energy

With euro-area inflation racing through 4%, markets are betting that price gains will stick, potentially forcing the European Central Bank to act by the end of next year. Bloomberg Economics thinks that view is wrong -- by then inflation will have slowed to about 1% as the impact of energy costs fades. As the headline rate falls back, the narrative on monetary policy will shift. Peak inflation fear is about to pass.

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