Euro area growth is overshadowed by soaring inflation

The economy of the 19 countries sharing the euro expanded by a quicker-than-forecast 2.2% in the third quarter

Shoppers in Quartier de la Madeleine in Paris. Picture: iStock

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.