(Bloomberg) — Professional forecasters predict the European Central Bank will take longer to reach its inflation target.
(Bloomberg) — Professional forecasters predict the European Central Bank will take longer to reach its inflation target.
While the quarterly survey still sees an unchanged longer-term reading of 2.1%, the prediction for 2025 was raised to 2.2% from 2.1% three months ago. At the same time, projections for this year and next were lowered.
The ECB on Thursday delivered the smallest interest-rate increase yet in its battle with persistently strong inflation, but insisted the move won’t be the last.
“The inflation outlook continues to be too high for too long,” Christine Lagarde told reporters in Frankfurt.
Core findings in the ECB Survey of Professional Forecasters:
- Consumer-price gains now seen averaging 5.6% this year, 2.6% in 2024 and 2.2% in 2025
- Core inflation expected to settle at 2% in longer term, unchanged from previous survey round
- Core inflation seen averaging 4.9% this year, 2.8% in 2024, 2.3% in 2025
- Forecasters increase projections for economic growth in 2023, cut expectations for following two years
- Forecasters lower projections for unemployment 2023-2025
- ECB survey includes 58 responses taken from March 31 to April 5
–With assistance from Jana Randow.
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