The Commission forecast euro zone consumer inflation of 5.6% in 2023 and 2.9% in 2024, both well above the European Central Bank's target of 2.0%.
Inflation this year is to be lower than the 5.8% forecast in May, but higher than previously forecast in 2024, as the May forecast was for 2.8%.
The ECB has been rapidly raising rates since the middle of 2022 to stem record price growth, making credit for the economy more expensive - a factor that hit the growth forecast.
Germany, Europe's biggest economy, will shrink 0.4% this year, the Commission forecast, revising down a 0.2% growth prediction from May.
But France and Spain will grow faster than previously expected in 2023 , the Commission said, projecting 1.0% and 2.2% growth respectively instead of the previously seen 0.7% and 1.9%.
Persons:
Jan Strupczewski, Philip Blenkinsop
Organizations:
ECB, Thomson
Locations:
BRUSSELS, Germany, Europe, Europe's, Italy, Netherlands, France, Spain