The European Central Bank (ECB) raised its inflation projections this week and slashed its 2022 growth outlook, saying the pandemic and supply chain disruptions are slowing the eurozone’s economic recovery.
The regulator now sees inflation above its 2% target this year and in 2022 but holding below it in the following two years. The forecast is in line with its previous guidance for the current inflation “hump” to be longer than expected but still largely transitory.
As for the coming year, ECB said inflation will soar “significantly higher” to 3.2%, well above the 1.7% projected in September. It…