The European Commission cut its forecasts for economic growth in the euro zone for this year and next, and revised up its estimates for inflation on Thursday, largely due to the impact of the Russia-Ukraine conflict.

The EU executive, which tracks the economy for the 27 countries in the European Union, said GDP growth in the eurozone would reach 2.6 percent in 2022 and a sharply lowered 1.4 percent in 2023. Inflation would end the year at 7.6 percent, much higher than previously forecast, and 4.0 percent in 2023.