An ECB quarterly survey published Friday showed euro-area inflation expectations for this year and next were revised up and that inflation may not return to the ECB’s 2% target until 2028. The survey raised the average inflation forecast for 2023 to 3.0% from 2.7% and lifted the 2024 forecast to 2.6% from 2.2%. Core inflation forecasts changed little, indicating the upward revision is driven mainly by energy costs, which the ECB says currently sit between its adverse and severe scenarios. Althou

An ECB quarterly survey published Friday showed euro-area inflation expectations for this year and next were revised up and that inflation may not return to the ECB’s 2% target until 2028. The survey raised the average inflation forecast for 2023 to 3.0% from 2.7% and lifted the 2024 forecast to 2.6% from 2.2%. Core inflation forecasts changed little, indicating the upward revision is driven mainly by energy costs, which the ECB says currently sit between its adverse and severe scenarios. Although policymakers left rates unchanged on Thursday, the stronger inflation profile could prompt another ECB rate increase in December.