Spain had to pay much more for food and electricity in particular. Consumer prices in the fourth largest economy in the eurozone also rose by more than 5.7 percent, which experts had expected.
With prices rising in many countries in the eurozone, including Spain, it is not easy for the European Central Bank (ECB) to convince consumers that high inflation is temporary. The European Central Bank’s inflation target is 2%. Christine Lagarde, president of the European Central Bank, among others, has indicated several times that peak inflation will abate. The central bank expects inflation of 1.8% for 2023 and 2024.
Prices in Poland are also rising faster than expected. According to Poland’s central bank, inflation will peak at 8.3% next year, before declining to 6.2% by the end of the year. The average inflation rate of 7.6% next year which is now forecast is higher than the 5.8% forecast in November. Energy prices in particular are fueling inflation.
Poland is a member of the European Union, but it is not part of the Eurozone. The Bank of Poland is expected to raise interest rates for the fourth time in a row next week to curb inflation.
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