ECB Lifts 2016 Inflation Forecast After Oil Rally

The European Central Bank has lifted its inflation outlook for the first time in a year, reflecting the recent rise in oil prices. At its news conference on Thursday after its rate decision, central bank President Mario Draghi said it now expects inflation to reach 0.2% in 2016, up from 0.1% predicted back in March. Inflation in May was at negative 0.1%, according to Eurostat's flash estimate released on Tuesday. For 2017 and 2018, the ECB still expects consumer prices to rise by 1.3% and 1.6%, respectively.