Euro zone inflation to remain above ECB’s target next year – Reuters

Euro zone inflation to remain above ECB’s target next year – Reuters

BENGALURU, Nov 12 (Reuters) - Euro zone inflation expectations are at risk of continuing to overshoot the European Central Bank's 2% target next year, according to a Reuters poll of economists who raised their outlook for consumer prices for a fifth consecutive month.

While inflation rose above 4% last month, more than twice the ECB's target, the Bank - unlike most other central banks - has pushed back on calls for tighter policy, calling the rise in inflation transitory and arguing it would subside next year.

But pandemic-led supply chain disruptions and rising oil prices challenge those views. Surging house prices are putting further pressure on the ECB, which has undershot its inflation target for nearly a decade, to act.