European Commission raises 2022 inflation forecast to 3.5% from 2.2%

The European Commission announced on Thursday that it raised the eurozone 2022 inflation forecast to 3.5% from 2.2% in November's forecast, as reported by Reuters. For 2023, the Commission sees inflation at 2.2%, compared to 1.7% in November. 

The publication further showed that the 2022 growth forecast got revised lower to 4% from 4.3%. 

"Multiple headwinds have chilled Europe's economy this winter: the swift spread of Omicron, a further rise in inflation driven by soaring energy prices and persistent supply-chain disruptions," European Economic Commissioner Paolo Gentiloni said, per Reuters. "With these headwinds expected to fade progressively, we project growth to pick up speed again already this spring."

Market reaction

This report doesn't seem to be having a significant impact on the shared currency's performance against its rivals. EUR/USD was last seen trading in the positive territory near mid-1.1400s.