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European Commission sees bloc's inflation at 2.7% in 2024​

Economy
15 May(Source: baha news)
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EPA-EFE/OLIVIER HOSLET
ECONOMY
The European Commission presented its Spring Economic Forecast on Wednesday, estimating the inflation rate this year to fall to 2.7% in the bloc and to 2.5% in the euro area. In 2025, the rate is expected to be at 2.2% in the European Union and 2.1% in the Eurozone.
The Commission cautioned in the report that domestic inflation might decrease more slowly than expected, potentially leading EU central banks to delay rate cuts until there is a more "firm" reduction in services inflation. "Following broad economic stagnation in 2023, better-than-expected growth at the start of 2024 and the ongoing reduction in inflation set the scene for a gradual expansion of activity over the forecast horizon," the Commission said in its report.
The Commission projected the bloc's gross domestic product (GDP) to rise 1% in and 0.8% in the euro area during 2024. In 2025, GDP is anticipated to accelerate to 1.6% in the EU and to 1.4% in the Eurozone.
 
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