FRANKFURT (Reuters) -Euro zone inflation will remain at or near the European Central Bank's 2% target in the coming years and growth is seen slowly picking up towards its potential, a key ECB survey
Key ECB survey sees benign inflation path around target
ECB Inflation Projections and Economic Growth
FRANKFURT (Reuters) -Euro zone inflation will remain at or near the European Central Bank's 2% target in the coming years and growth is seen slowly picking up towards its potential, a key ECB survey showed on Friday.
Current Inflation Trends
The ECB left interest rates unchanged for the third meeting in a row on Thursday, arguing that the inflation outlook remains broadly unchanged with price growth hovering around the 2% target and likely remaining near this level over the coming years.
Growth Forecasts
The ECB's quarterly Survey of Professional Forecasters, a key input into policy deliberations, sees inflation easing to 1.8% next year, then coming back to 2.0% in 2027, in line with the previous survey's prediction three months ago, and 0.1 percentage points above the ECB's own projections.
Short-term Projections
Over the longer term, defined as in 2030, the survey sees inflation at 2.0%, unchanged from the third quarter.
Long-term Expectations
October inflation, due at 1000 GMT, is expected to show a small decline to 2.1% from 2.2% a month earlier before dipping to 1.6% in early 2026, according to the ECB's own in-house projections. It is then seen slowly coming back to 2% by the middle of 2027.
Economic growth, seen at 1.2% this year, is expected to slow to 1.1% in 2026 before picking up to 1.4% in 2027 and hovering around 1.3% over the longer term. All projections for 2026 and beyond are unchanged from three months earlier.
(Reporting by Balazs Koranyi; Editing by Andrew Heavens)
