Euro zone inflation may be higher than expected in 2018: ECB's Nowotny

FILE PHOTO: European Central Bank (ECB) Governing Council member and OeNB governor Ewald Nowotny addresses a news conference in Vienna, Austria, June 9, 2017. REUTERS/Leonhard Foeger

FRANKFURT (Reuters) - Euro zone inflation could be higher next year than now projected as energy prices are moving higher, European Central Bank policymaker Ewald Nowotny told Bloomberg television on Friday.

“I think that inflation rates in 2018 might be higher than anticipated now because what we see is that energy prices are moving up,” Nowotny said, predicting that headline inflation could still dip next year while underlying inflation would move up.

In its latest projections published in September, the ECB predicted inflation at 1.2 percent next year, basing its forecast on oil prices LCOc1 averaging $52.6 per barrel, 16 percent below the current level.

Reporting by Balazs Koranyi; Editing by Francesco Canepa