FrankfurtForecasters now see euro zone inflation averaging 3.0% this year.
Fabio Panetta, Bank of Italy governor, said the European Central Bank may need more rate increases.
Surging energy prices drive the rise, and the bank held rates Thursday.
Forecasters expect no wage-price spiral, with wage growth slowing from 3.3% to 3.1% next year.
Policymakers weigh a December hike at their last meeting of the year, after Christine Lagarde announced she will step down early.
How each outlet framed it
drawn from 80+ reports worldwide
- Bloomberg Business
- Reuters
- Nikkei Asia
- ties the expected December hike to Lagarde's early exit and frames the energy shock as an Iran-war-driven upside risk
Sources: Bloomberg Business, Reuters, Nikkei Asia