ECB boosts 2021 and 2022 inflation forecasts

The latest HICP forecasts

  • 2021 inflation to 1.9% from 1.5%
  • 2022 to 1.5% from 1.2%
  • 2023 inflation remains at 1.4%
US CPI was at 5.0% y/y today. Are the base effects that much less in Europe? We’ll have to wait and see.
ECB forecasts
Core inflation:
  • 2021 at 1.1% vs 1.0% prior
  • 2022 1.3% vs 1.1% prior
  • 2023 1.4% vs 1.3% prior