Frankfort, New York Inflation in the euro area is more persistent than hoped. Most recently, the inflation rate even rose again slightly to 7.0 percent. Even if an end to interest rate hikes is at least within reach, it will still take longer for inflation to reach the European Central Bank’s (ECB) target of two percent.
The central bank itself believes that the rate of inflation will slow to around 3 percent towards the end of the year and stay there for a while, only reaching the target in 2025. However, there are a number of reasons that speak against this optimistic scenario:
1. The dynamic is unbroken
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