Sharp Drop for Euro-Zone Inflation in 2023 Looks Likely

Euro-zone inflation looks likely to stay above 8% through 2022, but next year Bloomberg Economics see a high probability of a sharp drop toward the European Central Bank’s 2% target. For the ECB, that counsels caution in responding too aggressively to the current elevated readings -- they aren’t here to stay. The threat of Russia turning off the gas is a wild card.

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