The euro area economy continued its vigorous recovery, albeit at a somewhat more moderate pace. The product is expected to exceed its pre-pandemic level by the end of the year. Thus the ECB in its usual Economic Bulletin in which it underlines that the grip of the pandemic on the economy has visibly eased, in the face of the high number of people currently vaccinated. This evolution supports consumer spending, particularly in the leisure, catering, travel and transport sectors.
In the coming months, however, the increases in energy prices could reduce purchasing power.
Price pressures remain high due to rising food and energy inflation, reflecting the rebound in prices from
low levels at which they were placed immediately after the onset of the coronavirus pandemic (COVID-19). The ECB finally believes that most of the price pressures are
of a temporary nature.