2017.10.2705:09:00UTC+00Forecasters Raise Longer-Term Inflation Expectations

Eurozone longer-term inflation was forecast to be higher than previous projection, while near-term inflation expectations remained unchanged, according to the Survey of Professional Forecasters published by the European Central Bank.

Longer-term inflation expectations were revised upwards to 1.9 percent from 1.8 percent.

Meanwhile, inflation forecast for 2017 was maintained at 1.5 percent and that for 2018 at 1.4 percent. Likewise, the estimate for 2019 was retained at 1.6 percent.

Expectations for real GDP growth averaged 2.2 percent this year instead of 1.9 percent. The projection for 2018 was lifted to 1.9 percent from 1.8 percent and that for 2019 to 1.7 percent from 1.6 percent.

Unemployment rate expectations were revised downwards at all horizons. The jobless rate is forecast fall to 8.6 percent next year from an estimated 9.1 percent. The rate is seen at 8.2 percent in 2019.

In the previous forecast, the bank had projected 9.2 percent jobless rate for this year, 8.8 percent for 2018 and 8.4 percent for 2019. The latest survey was conducted between October 2 and 6.