ECB survey: Euro-Zone inflation projections rise for 2025 and 2026

FRANKFURT, GERMANY: Euro-zone inflation will be slightly stronger than previously thought in 2025 and 2026, according to the European Central Bank’ quarterly survey of professional forecasters in April, and which included 54 responses.

The survey shows gains of 2.2 percent and 2 percent respectively, while expectations for 2027 and the longer term stayed at 2 percent – the ECB’s definition of price stability.

ECB cuts benchmark interest rate to 2.5pc amidst weak growth, rising inflation

As for other findings in the survey, forecasters raised outlook for inflation excluding energy, food, alcohol and tobacco by 0.1 percentage points for 2025-2027 and also for the longer term, reported Bloomberg.

They have also trimmed projection for 2025 economic growth to 0.9 percent from 1 percent, and to 1.2 percent from 1.3 percent for 2026 and raise 2027 forecast to 1.4 percent from 1.3 percent.

The unemployment forecast was lowered for 6.3 percent in 2025 and 2026.