ECB Lifts Inflation Forecasts on Higher Energy Costs
The ECB raised its 2026 inflation forecast to 2.6 percent today due to rising energy costs. Officials warned that Middle East conflicts pose further price risks.
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The European Central Bank has revised its inflation projections upward, primarily driven by escalating energy costs and the potential for further price spikes linked to ongoing conflict in the Middle East. Under its new baseline scenario, the bank expects inflation to reach 2.6% in 2026, a sharp increase from the 1.9% forecast in December and well above its 2% target. For 2027, the projection has been adjusted to 2.0% from the previous 1.8%.
