Euro zone firms optimistic but see upside inflation risks, ECB survey shows

FRANKFURT, Oct 27 (Reuters) – Euro zone firms are broadly optimistic about their business prospects but also fear that inflation could end up on a higher path, the European Central Bank's Survey on the Access to Finance of Enterprises showed on Monday. The ECB said that a net 25% of surveyed firms remained optimistic about developments in the next quarter, an increase from three months ago, but businesses also continued to see a deterioration in their profits. "Median expectations for annual inflation one year ahead stayed at 2.5%, while expectations for three and five years ahead remained at 3.0%," the ECB said. "For the five-year horizon, most firms continue to indicate that risks to the inflation outlook are tilted to the upside." (Reporting by Balazs Koranyi; Editing by Toby Chopra)

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