June 14, 2018 / 12:47 PM / 5 months ago

ECB raises inflation projections, cut 2018 growth forecast

    RIGA, June 14 (Reuters) - The European Central Bank raised
its inflation forecasts for this year and next but lowered its
2018 growth projection, ECB President Mario Draghi told a news
conference on Thursday.
    The ECB, which targets inflation at just below 2 percent,
sees price growth at 1.7 percent this year and in 2019 and 2020.
    With oil prices up more than 60 percent since last year and
the euro off its recent highs against the dollar, imported
inflation has been seen rising, slowly feeding through consumer
prices and even pulling underlying inflation up over time. 
    But worries over protectionism and turbulence in several key
economies has weighed on growth, forcing the ECB to trim back
its growth forecasts. 
    Economic growth this year is now seen at 2.1 percent versus
an earlier forecast of 2.4 percent.
    The following are the ECB staff's new projections for
inflation and GDP growth, with March forecasts in brackets.
    The ECB updates projections once a quarter.

                2018        2019        2020
GDP growth    2.1 (2.4)   1.9 (1.9)   1.7 (1.7)
Inflation     1.7 (1.4)   1.7 (1.4)   1.7 (1.7)

 (Reporting by Balazs Koranyi in Frankfurt; Editing by Catherine
Evans)
  
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