Panetta: Inflation Hitting Eurozone Recovery

The economic recovery from a pandemic in the Eurozone is still incomplete and the recent inflation shock along with a new pandemic waves are endangering the rebound, European Central Bank policymaker Fabio Panetta said on Thursday.

“The inflationary spike stemming from global supply shocks and the resurgence in the pandemic are hitting the euro area at an early stage of its recovery,” Panetta told a conference.

“Not only are we still some distance from having returned the economy to its pre pandemic trend, but services activity and investment remain well below their pre pandemic levels,” he said.