"Weakness in domestic demand, in particular consumption, shows that high and still increasing consumer prices for most goods and services are taking a heavier toll than expected," a commission statement said.
The commission cut its forecast for Europe's largest economy this year to minus 0.4%.
The economic rebound from the pandemic sent consumer prices higher as demand for goods created bottlenecks in supplies of raw materials and parts, which have now mostly eased.
Higher prices spread to food and then services, a broad category ranging from haircuts and hotel stays to medical treaments and car repairs.
Prospects of weakening economic growth have led some economists to predict the European Central Bank may avoid raising interest rates Thursday following nine straight hikes.
Persons:
Paolo Gentiloni, ”, Alexander Valentin, Gentiloni, Christine Lagarde
Organizations:
European Union, European Commission, European Central Bank, EU, ECB, Oxford, International Monetary Fund, U.S .
Locations:
FRANKFURT, Germany, —, China, Ukraine, Russia, Europe, U.S