Net of these components, inflation stood at 3.5 per cent, in turn influenced by the transmission of higher energy costs to the final prices of other goods and services. In the United States though, core inflation, at 6.2 per cent, is only 2 percentage points below overall inflation, mainly as a consequence of demand overheating.
The latest forecasts of the main international institutions and private analysts indicate that price growth in the euro area will remain high this year and then fall considerably in 2023, returning to levels consistent with the European Central Bank’s definition of monetary stability, namely inflation at 2 per cent in the medium term (Figure 3).