Euro zone growth, inflation soar, leaving ECB with dilemma – Reuters

Euro zone growth, inflation soar, leaving ECB with dilemma – Reuters

FRANKFURT/BRUSSELS, Oct 29 (Reuters) - The euro zone economy continued to boom over the summer as activity rebounded after coronavirus lockdowns but inflation is also blowing past expectations, leaving the European Central Bank with a growing policy headache.

Growth has soared as consumers return to stores and venues but many businesses have been unable to keep up with demand, putting further pressure on prices already being driven higher by the rising cost of commodities.

The economy of the 19 countries sharing the euro expanded by a quicker-than-forecast 2.2% in the third quarter, its fastest pace in a year and putting it on course to reach its pre-crisis size before the end of the year.