ECB Slashes 2015 Inflation Outlook To 0%

Inflation in the eurozone is likely to remain critically low over the next few months, with consumer-price growth set to average only 0% in 2015, according to the European Central Bank's latest staff projections released on Thursday. The outlook marks a sharp revision from the 0.7% forecast from December, reflecting the negative impact from lower prices. However, inflation should start to gradually pick up in the latter half of 2015, supported by "the favorable impact of our recent monetary policy measures", a weak euro and lower oil prices, ECB President Mario Draghi said at the news conference. For 2016, the bank lifted its inflation forecast to 1.5%, up from 1.3% expected previously. For 2017, the ECB expects inflation to rise to 1.8%, close to the central bank's target of just below 2%.