Euro zone inflation may be higher than expected in 2018: ECB’s Nowotny

FRANKFURT (Reuters) – Euro zone inflation could be higher next year than now projected as energy prices are moving higher, European Central Bank policymaker Ewald Nowotny told Bloomberg television on Friday.

“I think that inflation rates in 2018 might be higher than anticipated now because what we see is that energy prices are moving up,” Nowotny said, predicting that headline inflation could still dip next year while underlying inflation would move up.

In its latest projections published in September, the ECB predicted inflation at 1.2 percent next year, basing its forecast on oil prices () averaging $52.6 per barrel, 16 percent below the current level.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.