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Euro area inflation will likely rise through the rest of 2021 as higher fuel costs and unwinds of 2020 temporary tax cuts work their way out of the consumer price index, European Central Bank President Christine Lagarde said Thursday. Citing the inflation projections of the ECB staff economists, Lagarde said inflation was expected to average 1.9% over 2021, 1.5% in 2022 and just 1.4% in 2023.
Growth is projected at 4.6% in 2021, 4.7% in 2022 and 2.1% in 2023. That would see all output lost through the pandemic by H1 2022.