Renewed conflict reignites inflation and growth worries
The US-Iran conflict has increased uncertainty over the inflation and growth outlook.
The Eurozone remains a net energy importer, making it vulnerable to disruptions in energy flows and higher oil prices.
Eurozone inflation slowed to 2.8% in June, but the renewed escalation has increased uncertainty again.
ECB staff projections see GDP expanding 0.8% in 2026, 1.2% in 2027, and 1.5% in 2029.