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Eurozone inflation is set to rise further over the coming months and remain elevated through 2027, according to ABN AMRO, as food and goods pipeline pressures partly counter easing energy inflation. The bank examines how overlapping supply-side shocks involving energy, food and supply bottlenecks are driving inflation higher across the Eurozone. For the European Central Bank, it identifies wage growth and inflation expectations as key variables. "As a result, eurozone inflation has been trending up in recent months and reached 4% in October. These shocks affect inflation through different channels and at different speeds.
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