Macro - Weekly Briefings - Eurozone
The surge in gas prices this week has laid bare the fact that the eurozone faces a long, cold winter. Gas futures have risen sharply over the past weeks and are now much higher than our baseline forecast for the coming quarters. If gas price dynamics do not revert prior to our September forecast revision, we will be led to revise our inflation expectations for Europe even higher, with stark negative implications to household spending and growth.
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