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Working Paper
52 pages, 1M
September 2024

Investment decisions in a high-inflation environment

In the 2021-2022 period, European firms have faced historically high inflation, with annual increases in consumer prices peaking at 11.5 % in October 2022. While the linkage between high inflation and investments is expected to be negative, through higher uncertainty, financial tightening, downward pressures on demand and worsening economy outlook, there are couple of drivers that can explain the

Source: op.europa.eu