EU foresees economy improving, but inflation still painful

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — Europe’s economic prospects are looking up, at least a little. The European Union’s executive Commission on Monday raised its economic growth forecast for the year. It’s now up to 0.8% for the 20 countries using the euro currency. That means the commission expects the eurozone to scrape by without a technical recession in 2023. But things are not great either. Inflation may have passed its peak, but it’s still high at 8.5%. That’s going to keep holding back consumer spending. And the European Central Bank is raising interest rates, a step that’s aimed at getting inflation down but also makes it more expensive to get credit for purchases or business expansion.