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The European Commission predicts the highest inflation in Europe in history


Juillet, 14 2022
watermark Economic news

The European Commission has worsened the forecast for inflation in the EU countries in 2022 from 6.8% to 8.3%, which was the highest value in history.


According to the EC's summer economic forecast, the average annual inflation in the eurozone countries in 2022 will reach a historical maximum of 7.6%. In all EU countries, inflation may reach the level of 8.3%. In 2023, the rate of price growth will decrease to 4% and 4.6%, respectively. Last year, inflation was 2.9%. 


The EU economy, according to the new forecast, will grow by 2.7% in 2022, and by 1.5% in 2023. In the past 2021, the GDP of the EU countries grew by 5.4%. 


At the same time, economists note that forecasts of economic activity and inflation significantly depend on the course of Russia's special operation in Ukraine, as well as its consequences for gas supplies to Europe. It is possible that a new increase in gas prices will lead to a further increase in inflation and curb economic growth.


To date, inflation in the EU countries has already reached a record level and exceeded the target of the European Central Bank (2%) by more than four times. At the same time, the risk of recession in the eurozone is growing, in parallel with rising inflation and the likelihood of a shortage of natural gas in Europe.


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