ECB survey sees higher inflation in coming quarters
TLT•The ECB's survey of professional forecasters raised its euro zone inflation projections to 3.0% this year and 2.6% next year, and sees inflation returning to the bank's 2% target only in 2028.
1. Inflation projections rise
The ECB's quarterly Survey of Professional Forecasters projects euro zone inflation will average 3.0% this year, up from 2.7% previously, and 2.6% next year, up from 2.2%. Forecasters said inflation may return to the ECB's 2% target only in 2028.
2. Energy and wages
Core inflation, excluding food and energy, is projected to average 2.4% this year and 2.5% next year, and remain above 2% in 2028. Forecasters expect wage growth to slow from 3.3% this year to 3.1% next year and 2.8% in 2028, and do not expect high inflation to trigger a wage-price spiral.
