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15 May 2014
ECB Monthly Report: HICP inflation to start rising in 2015
FXStreet (Łódź) - In its May Monthly Report the ECB said that the economic recovery in the Eurozone was proceeding as expected and that inflation should stay low for an extended period of time before gradually moving towards the 2% target.
The Governing Council's estimates point to annual HICP inflation remaining low in the upcoming months before starting to rise during 2015 to reach 2% by the end of 2016. “Medium to long-term inflation expectations remain firmly anchored in line with price stability,” the report states.
“Both upside and downside risks to the outlook for price developments” are seen “as limited and broadly balanced over the medium term” therefore the ECB will closely monitor the impact of geopolitical tensions and exchange rate developments.
As for the general government deficit in the Eurozone, it is expected to drop further, from 3.0% of GDP in 2013 to 2.5% this year and then to 2.3% in 2015. “The government debt-to-GDP ratio is expected to stabilise at 96.0% in 2014 and to decline to 95.4% in 2015,” the Governing Council predicts.
The Governing Council's estimates point to annual HICP inflation remaining low in the upcoming months before starting to rise during 2015 to reach 2% by the end of 2016. “Medium to long-term inflation expectations remain firmly anchored in line with price stability,” the report states.
“Both upside and downside risks to the outlook for price developments” are seen “as limited and broadly balanced over the medium term” therefore the ECB will closely monitor the impact of geopolitical tensions and exchange rate developments.
As for the general government deficit in the Eurozone, it is expected to drop further, from 3.0% of GDP in 2013 to 2.5% this year and then to 2.3% in 2015. “The government debt-to-GDP ratio is expected to stabilise at 96.0% in 2014 and to decline to 95.4% in 2015,” the Governing Council predicts.