ECB sees inflation surge, firming global recovery

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FRANKFURT (Reuters) - Euro zone inflation will exceed 1 percent at the turn of the year, hitting a level not seen since late 2013, and global growth is picking up speed, the European Central Bank said in an economic bulletin on Thursday.

"The medium-term outlook for global activity remains one of strengthening growth, albeit below its pre-crisis pace," the ECB said. "Overall, growth appears to be holding up in advanced economies and seems to have bottomed out in emerging market economies."

Still, the global outlook remains overshadowed by the adverse effect of low raw materials prices on commodity-exporters, the rebalancing of the Chinese economy, and policy uncertainty in the United States, the ECB said in an outlook largely consistent with its Dec 8 policy statement.

(Reporting by Balazs Koranyi; Editing by Alison Williams)