Eurozone consumer confidence plunged to its lowest level since the start of the pandemic as Russia’s invasion of Ukraine drove energy prices higher and could worsen inflation rates.
Source: European Commission
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An index from the European Commission reported a reading of -18.7 in March, down from -8.8 in February and worse than all estimates.
The war on the currency bloc’s border has intensified concerns that inflation will accelerate further as economic expansion will lag.
In a “severe” scenario, the European Central Bank expects price gains to worsen to 7.1% this year, with growth at only 2.3%.