ECB: inflation set to remain well above target until mid-2027 due to the Middle East and Ukraine
Then I’ll get back on track towards the end of next year
(Il Sole 24 Ore Radiocor) - “The conflict in the Middle East and recent developments in the unjustified war waged by Russia against Ukraine have led to a further rise in prices”
energy. This is likely to keep headline inflation well above the target until the first half of 2027’. The ECB writes this in its Economic Bulletin, adding that ‘thereafter, the energy component
‘is expected to fall and remain negative until mid-2028, leading to a decline in headline inflation’. It is also expected ‘that energy price rises will gradually feed through to food and core inflation’. According to the ECB, ‘the improvement in the economic outlook should also contribute to a slight rise in core inflation, which is expected to continue rising until early 2027’
‘and is expected to remain high for the rest of the year, before falling in 2028’. In general, ‘headline inflation is expected to return to around the target towards the end of
