Eurozone inflation expectations were revised upward for all horizons due to higher energy prices and the impact of supply chain tensions, the Survey of Professional Forecasters from the European Central Bank showed on Friday.
The inflation forecast for this year was revised up to 2.3 percent from 1.9 percent. Similarly, the projection for next year was lifted to 1.9 percent from 1.5 percent and that for 2023 to 1.7 percent from 1.5 percent.
Data released by Eurostat showed that Eurozone inflation accelerated sharply to the highest since 2008 on higher energy prices. Inflation rose to 4.1 percent in October from 3.4 percent in September.
Excluding energy, food, alcohol and tobacco, core inflation advanced to 2.1 percent from 1.9 percent a month ago.
According to SPF survey, GDP is set to grow 5.1 percent in the current year, up from the earlier estimate of 4.7 percent. Meanwhile, the outlook for 2022 was lowered slightly to 4.5 percent from 4.6 percent.
The currency bloc is forecast to grow 2.2 percent in 2023 versus the previous outlook of 2.1 percent.
Overall, the growth expectations continue to imply that economic activity will surpass its pre-pandemic level in the fourth quarter of 2021.
SPF respondents expect the unemployment rate to decline from 7.8 percent in 2021 to 7.0 percent by 2026.