A survey of European economic analysts has found that inflation in the 17 countries that share the euro is expected to remain within the target range set by the central bank, although forecasts for price growth are higher than earlier estimates, according to The Wall Street Journal. The European Central Bank said on Thursday its Survey of Professional Forecasters showed that analysts expect the annual rate of inflation for an aggregated index of consumer prices in the eurozone to be 1.9% in 2011, which is up from 1.8% previously. That figure is below the near but below 2% target set by the ECB.
The survey comes as something of a reassurance after rapid gains in food and energy prices sent eurozone inflation above the target rate for the first time in over two years. The results of the poll may quiet speculation that the ECB will raise rates in the coming months to prevent an entrenchment of expectations for rising prices. Despite the moderate findings, the CB cautioned that “there is no room for complacency” and that a “non-negligible” inflation risk still exists.
