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Eurozone inflation faces further upside pressure and is expected to remain elevated through 2027, according to ABN AMRO. The bank examines how overlapping supply-side shocks from energy, food and supply bottlenecks are driving inflation higher. It forecasts a further rise over the coming months, with food and goods pipeline pressures partly offsetting the easing of energy inflation. For the European Central Bank, wage growth and inflation expectations remain key variables, the bank highlights. "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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