Reuters reports that a survey by the ECB showed that eurozone inflation will be higher in the coming years than earlier predicted.
Consumer price growth is now seen averaging 2.3% this year and 1.9% the next. This compared to 1.9% and 1.5% respectively in the last edition of the Survey of Professional Forecasters three months ago.
"Respondents attributed the upward revisions mainly to higher energy prices and the impact of supply chain tensions," the ECB said.
Already close to twice the ECB's target, inflation is set to accelerate further and possibly hit 4% in the coming months, on soaring commodity prices and industrial supply bottlenecks, keeping pressure on both producer and consumer prices.
It will then decline but many policymakers see it remaining above the ECB's 2% target in 2022, making ultra easy monetary policy more difficult to justify.
In the longer term, defined as 2026, inflation was seen at 1.9%, above the previous projection of 1.8%.
Projections for growth were raised to 5.1% this year from 4.7% seen previously, while 2022 growth is now expected at 4.5%, broadly in line with the previous, 4.6% figure.