ECB expects a sharp rise in inflation

Inflation in the euro area will exceed 1% at the end of the year, reaching levels not seen since the end of 2013, while growth in the global economy will increase speed. It was said the European Central Bank's latest economic bulletin, released today.
In the medium term prospects for global business activity remain in favor of strengthening of economic growth, though at a pace that is below its pre-crisis levels. Overall growth in developed economies will be a little better and it seems that the economies of emerging markets will start to get away from the bottom, says ECB.
However, the global outlook remains overshadowed by the unfavorable impact of lower commodity prices on countries exporting goods. The rebalancing of the Chinese economy and uncertainty about future US policy after the inauguration of the new US president Donald Trump also will have their influence. It was underlined by the central bank, as today's economic bulletin is largely in line with bank's statement after the last annual meeting on 8 December.
The ECB reiterated that they stand ready to use all available financial instruments within itheir mandate and that if necessary they can make new changes both in size and in duration of the program for "quantitative easing".