Euro zone inflation may be slightly higher this year than expected but is still seen stabilizing at the ECB’s 2% target, according to the ECB.
The 2025 inflation forecast was raised to 2.2% from 2.1%, and 2026 to 2.0% from 1.9%. However, the survey data was collected before April 4, missing recent market shifts such as a stronger euro and falling energy prices, which could ease inflation.
Despite rising trade tensions with the U.S., the 2025 growth forecast was only slightly lowered to 0.9% from 1.0%. ECB President Christine Lagarde has warned that a full trade war could cut euro zone growth by up to 0.5 percentage points.
The ECB cut interest rates for the seventh time in a year last week, citing progress on disinflation and growing downside risks.
via Yahoo Finance
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