Home > EU > ECB trims core inflation forecasts for 2018-19

ECB trims core inflation forecasts for 2018-19

Written by Business World, on 8th Jun 2017. Posted in EU

article headline

The European Central Bank on Thursday lowered its forecasts for core inflation in the next two years, in a further sign that it expect prices pressures in the euro zone to remain muted despite the bloc's brighter growth prospects.

Once the energy and food prices are excluded, the ECB now sees inflation at 1.4% in 2018 and 1.7% in 2019. This compares with the central bank's March projections of 1.5% and 1.8% respectively.

For 2017, the ECB confirmed its previous core inflation forecast of 1.1%.

Earlier on Thursday, the ECB had also lowered its headline inflation outlook to reflect a drop in oil prices, leaving it well below its target of almost 2% through 2019.

The mixed outlook is likely to strengthen the case made by the ECB's more dovish rate-setters, who argue that price pressures in the euro zone are still too weak for the central bank to start preparing to unwind its stimulus. (Reuters)

Source: www.businessworld.ie

More articles from EU

image Description

European shares fall on Paris incident

Read more
image Description

UK ready to pay up to €40bn to leave EU

Read more
image Description

EU's top negotiator warns of possible delays to Brexit talks

Read more
image Description

Euro holds below 14-month highs before ECB decision

Read more
image Description

EU and UK to present post-Brexit plan on WTO membership

Read more