Professional forecasters up inflation outlook in latest survey, but in line with the ECB's own outlook.
Inflation across the euro area is currently forecast to be just above the European Central Bank's medium-term inflation target, the bank's latest survey of professional forecasters shows. The outlook for 2024 from the Q3 SPF is currently in line with those of the ECB's own staff forecasts.
Inflation is seen at 7.3% for 2022, 3.6% in 2023, 2.1% in 2024 and 2.2% over the longer term. That compares to 6.0%, 2.4%, 1.9% and 2.1%, respectively, in the Q2 survey. The forecast of inflation at 2.1% in 2024, the ECB's medium-term horizon, is the same as that in the last-round projections from the central bank's staff economists.
Concerned about surging inflation, the ECB hiked interest rates for the first time since 2011 Thursday, with the key deposit rate rising 0.5% to 0% -- out of negative territory for the first time since June 2014.