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, Reuters reports.
“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 LCOc1 averaging $52.6 per barrel, 16 percent below the current level.