ECB Forecasters Expect Quick Return to Inflation Target
Professional forecasters expect inflation to fall to 2.0% by 2028 despite current energy price pressures. Growth forecasts for this year were cut to 1.0%.
The European Central Bank (ECB) Survey of Professional Forecasters predicts Euro zone inflation will hit 2.7% this year before falling to 2.0% by 2028. This outlook follows a jump to 3% inflation last month as energy costs remain elevated. The survey findings make it increasingly likely that the ECB will need to raise interest rates to prevent longer-term price expectations from rising.
### Inflation Expected to Anchor Near Target ECB policymakers reviewed the survey during last week's rate-setting meeting. The data shows inflation retreating to 2.1% by 2027, even as Brent Crude Oil prices pressure short-term consumer costs.
