The European Central Bank’s (ECB) Survey of Professional Forecasters released on Friday showed that the respondents predict higher in the coming years while expecting the inflation to come in just below the central bank’s 2% target in 2022.

Key findings

"Sees 2021 Eurozone inflation at 2.3% vs 1.9% seen three months ago."

"2022 inflation seen at 1.9% vs 1.5%, 2023 at 1.7% vs 1.5%."

"Longer-term or 2026 inflation seen at 1.9% vs 1.8%."

"Sees 2021 GDP growth at 5.1% vs 4.7% seen three months ago, 2022 seen at 4.5% vs 4.6%."

"Respondents attributed the upward revisions mainly to higher energy prices and the impact of supply chain tensions.”

"Although both these factors were also cited in the previous round, the recent developments were seen to have been more intense and were expected to be more persistent than previously anticipated."