FRANKFURT: Euro zone inflation will be "clearly" above the European Central Bank's forecast this year but much of the increase will be temporary and price growth will be weak for years to come, European Central Bank Vice President Luis de Guindos said on Wednesday.

Growth on the other hand could fall short of projections in the first quarter due to widespread pandemic-related restrictions, even if full-year activity is still seen in line with the bank's 3.9% projection made in December, de Guindos said in a webinar with investment bank Berenberg.

The ECB earlier forecast inflation at 1% in all of 2021 but private forecasters see price growth surging towards 2% in the coming months before a decline at the end of the year.