In 2022, the annual inflation rate hit a record level (8.4%) since the Eurozone’s creation in 1999, mostly because of disruptions in the global supply chain and by the energy crisis provoked by the conflict in Ukraine.
Now the question that must be asked is whether inflation rates will rise or fall in 2023 and beyond. Indeed, a few factors seem to suggest that the European Central Bank’s (ECB) inflation target of 2% could be reached if other circumstances don’t intervene to maintain it at high levels.
