Euro-Area Inflation Seen Fading in Coming Months

The worst is over for firms and households feeling the pinch of higher prices in the euro area as inflation is fading from a record high, according to Bloomberg’s latest survey of economists. While the peak in price growth at the end of 2021 will have been greater than previously forecast, the rate is set to fall below the European Central Bank’s 2% target by the end of 2022. That forecast takes some pressure off the institution’s Governing Council, which is due to convene on Wednesday and Thursday to begin plotting a course out of crisis-era stimulus.

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