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ECB President Christine Lagarde at press conference in Frankfurt (February 3)
Photo: Thomas Lohnes/POOL/EPA
ECB monetary policy experts have revised their inflation expectations for the euro zone significantly upwards this year.
The European Central Bank (ECB) announced that they are now assuming an increase in consumer prices of three percent.
In autumn she had estimated a value of 1.9 percent.
The ECB is targeting 2.0 percent inflation as the optimal level for the economy.
However, in view of the recently skyrocketing energy prices, inflation in the euro zone in January at 5.1 percent was well above the target mark.
Regular polls
For 2023, the experts are now anticipating an inflation rate of 1.8 percent.
In autumn they had expected 1.7 percent.
For 2024, the economists surveyed by the ECB assume an inflation rate of 1.9 percent.
In the longer term, they predict that inflation will hit the target of two percent.
In the autumn forecast they had estimated 1.9 percent.
The ECB surveys economists four times a year about their growth and inflation forecasts.
These survey results always play an important role in the monetary policy deliberations of the central bank.
Possible rate hikes?
ECB President Christine Lagarde recently emphasized how great the danger of rising prices is for all those people “who have to fill up and shop every day”.
We are therefore ready to review all measures.
Observers see this as an indication that the central bank could raise the key interest rate as a first step in March.
"Inflation hits the hardest on those who are vulnerable," Lagarde said.
"We discussed this very seriously in the ECB's Monetary Policy Council."
rai/Reuters
