SPF: Eurozone Inflation Will Accelerate in Near Term
ECB released the latest Survey of Professional Forecasters (SPF). A survey has revealed that inflation in the Eurozone could accelerate faster than initially thought, underpinning its decision to wind down its stimulus program. Most of the improvement in the forecasts was due to volatile food and energy prices as underlying inflation forecasts were unchanged in the survey.
The survey showed that headline inflation in the currency bloc was seen at 1.7% this year, above a previous projection of 1.5%, with next year’s rate also rising to 1.7% from 1.6%. By 2023, deemed 'long term' in the survey, the inflation rate is seen accelerating to 1.9%.
The survey also predicts slower economic growth in the bloc in the near term. The GDP growth projection for 2018 was cut to 2.2% from 2.4%. For next year, it was reduced to 1.9% from 2%. Over the long-term, growth is seen at 1.6%.