Central Banks
Fiscal Support Since Pandemic Still Boosting Inflation, ECB Says
Shoppers in Alexanderplat, Berlin.
Photographer: Yen Duong/BloombergThis article is for subscribers only.
Aid measures by euro-zone governments during the pandemic and the war in Ukraine will keep stoking inflation in the years ahead, the European Central Bank said.
The increased spending will boost price growth by 0.7 percentage point this year, 0.4 percentage point in 2026 and 0.3 percentage point in 2027, according to a pre-release of the ECB’s monthly bulletin published Monday.