13 Feb 2014
ECB lowers inflation forecasts for this and next year in its February Monthly Report
FXStreet (Łódź) - The European Central Bank indicated in its February Monthly Report that inflation in the Eurozone should remain low for a prolonged period of time, before it gradually starts climbing towards the 2% target level.
“A cross-check with the signals from the monetary analysis confirms the picture of subdued underlying price pressures in the euro area over the medium term,” the ECB said.
According to the Survey of Professional Forecasters, 2014 HICP data was revised downwards to 1.1% from the previous forecast of a 1.5%. The forecast for 2015 was reduced to 1.4% from 1.6% seen in the fourth quarter of the year and the prediction for 2016 was set at 1.7%.
As Mike Paterson from Forex Live observes: "The figures largely match the December ECB Staff Forecast report but could signal changes in the March publication which comes with Bank's next rate decision."
“A cross-check with the signals from the monetary analysis confirms the picture of subdued underlying price pressures in the euro area over the medium term,” the ECB said.
According to the Survey of Professional Forecasters, 2014 HICP data was revised downwards to 1.1% from the previous forecast of a 1.5%. The forecast for 2015 was reduced to 1.4% from 1.6% seen in the fourth quarter of the year and the prediction for 2016 was set at 1.7%.
As Mike Paterson from Forex Live observes: "The figures largely match the December ECB Staff Forecast report but could signal changes in the March publication which comes with Bank's next rate decision."