- Negative effect of the conflict and associated uncertainty surrounding economic growth could reduce inflationary pressures in the medium term
- Risks to medium-term inflation outlook include above-target moves in inflation expectations, ghierh than anticipated wage hikes and a durable worsening of supply-side conditions
- Even though ECB's central scenario remains one of gradual convergence to 2% inflation over the medium term, the war has intensified the upside risks to inflation path, especially in the near term
- Economic situation in eurozone will crucially depend on the war, sanctions and possible further measures
We've gone from worrying about inflation to worrying about growth in record time.