Economy: ECB Deputy Vujcic warns of economic damage due to inflation
Boris Vujcic warns particularly of the dangers of a possible cold winter. Meanwhile, consumers expect a persistently high inflation according to a survey.
European Central Bank Vice-President Boris Vujcic warns that persistently high inflation rates pose risks to the European economy. He cautions that if inflation remains high through autumn and affects household incomes and consumer behavior, it will dampen GDP growth. The Eurozone economy grew by 0.6% in the spring, despite energy price increases due to the Iran war. The ECB has raised interest rates to 2.5% to combat inflation and revised its growth forecasts upwards, expecting 0.9% GDP growth this year and 1.4% in 2027.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
