However, the upward effect of the underlying inflation pressures on headline inflation will be roughly counterbalanced by the expected decline in energy prices. Accordingly, our latest Eurosystem staff macroeconomic projections foresee headline inflation at 1.9 per cent in 2021, 1.5 per cent in 2022 and 1.4 per cent in 2023.
Compared with the March 2021 ECB staff macroeconomic projections, inflation has been revised up for 2021 and 2022, largely owing to temporary factors and higher energy price inflation, and is unchanged for 2023 at a level below our inflation aim.