Inflation is increasingly spreading across the eurozone, while economic growth is slowing as the bloc struggles due to the conflict in Ukraine, Vice President of the European Central Bank (ECB) Luis de Guindos said, Report informs.
“We expect that in the third and fourth quarters, economic growth will slow down significantly, and we may witness that its pace will approach zero,” he said.
In September, inflation will accelerate to 9.6%, which will be a record high for the eurozone. Growth in the core price index, which does not take into account volatile food and fuel prices, is also likely to accelerate.
The ECB raised interest rates by unprecedented 75 basis points at its September meeting and promised further action in the coming months as inflation in the euro zone hit its highest level in almost 50 years and is set to rise even higher.