Brussels raises Eurozone inflation forecast

The European Commission revised upwards its inflation forecasts for the euro-zone and said European economic growth, though relatively strong, was unlikely to equal US growth until 2002.

In its latest six-monthly economic forecasts released today, the Commission said it expected Eurozone inflation to average 2.3 per cent this year and 2.2 per cent in 2001. The previous estimates for both years, published last March, were 1.8 per cent. The forecasts suggest the European Central Bank is at risk of

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