ECB doubles its inflation forecast - and heralds a tentative turnaround

Created: 12/16/2021, 6:10 PM

The euro will probably have less purchasing power in the coming year.

The ECB expects inflation of 2.6 percent © Daniel Karmann / dpa

The European Central Bank (ECB) expects inflation in the euro area to be significantly higher in some cases this year and next than recently assumed.

Frankfurt / Main - According to the forecast presented on Thursday, the inflation rate will be 2.6 percent this year.

In September the central bank had assumed 2.2 percent.

In the coming year, the monetary authorities expect an annual average price increase of 3.2 percent and thus a significantly higher rate of inflation than in September.

At that time, the ECB was still assuming an inflation rate of 1.7 percent for 2022.

For 2023, the ECB is now predicting inflation of 1.8 percent (September forecast: 1.5 percent) in the common currency area.

The forecast, presented for the first time for 2024, also assumes a rate of 1.8 percent.

The central bank is aiming for an annual inflation rate of two percent for the currency area of ​​the 19 euro countries and is at least temporarily ready to accept a moderate rise or fall below this mark.

According to the latest ECB forecast, the economy in the euro zone will grow by 5.1 percent this year (September forecast: 5.0 percent).

For the coming year, experts at the central bank expect economic output to rise by 4.2 percent (September forecast: 4.6 percent).

In 2023, the gross domestic product is expected to grow by 2.9 percent (September forecast: 2.1 percent) and a year later by 1.6 percent.

In the corona crisis year 2020, GDP in the euro area fell by 6.4 percent and was therefore stronger than ever before.