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Experts consulted by the ECB raise their inflation forecast to 1.9% in 2021

Frankfurt (Germany), Jul 23 (EFE) .- Experts in economic forecasts consulted by the European Central Bank (ECB) have raised their inflation forecast for 2021 in the euro zone to 1.9%, three tenths more than 1 , 6% that they estimated in the previous survey of the second quarter.

The ECB reported this Friday that the experts consulted have revised upwards their inflation forecasts until 2026 and those for growth until 2023.

Experts also project an inflation of 1.5% in 2022 (before 1.3%), and 1.5% in 2023 (1.5%).

Likewise, they calculate an average long-term inflation, in 2026, of 1.8% (1.7% in the previous survey of the second quarter, which referred to 2025).

Experts consider that some factors for which inflation rises in 2021 will be “temporary”, but believe that inflationary pressures will gradually increase as economic activity recovers.

Regarding core inflation, which discounts the most volatile elements such as energy, food, alcohol and tobacco, they forecast 1.2 in 2021 (previously 1.1%), 1.3% in 2022 ( 1.1%), 1.5% in 2023 (1.4%) and 1.7% in 2025 (1.6%).

The ECB has modified its monetary policy strategy and is going to accept a transitional period of inflation above 2% before acting and tightening monetary policy.

The entity is going to focus more on the inflation trend in the medium-long term.

In short, the ECB is going to keep interest rates very low until it sees that inflation is on average 2% also in 2023 and 2024 and even in 2025, according to some analysts.

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