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European Central Bank Lowers Eurozone Inflation Forecast for 2025-2026

by in Economy, Business, Tax

ChatGPT Image Jun 6 2025 01 53 28 PM


The European Central Bank forecasts that consumer prices in the eurozone will increase by 2% in 2025 and by 1.6% in 2026. The forecast was published after a meeting at which the European Central Bank cut rates by 25 basis points.

Three months ago, the regulator predicted inflation of 2.3% in 2025 and 1.9% in 2026. The revision was due to expectations of lower energy costs and a strengthening euro.

Inflation is expected to be equal to 2% in 2027.

The European Central Bank forecasts that consumer prices excluding energy and food (core inflation) will increase by 2.4% this year, 1.9% next year, and 1.9% in 2027.

The European Central Bank maintained its estimated eurozone GDP growth in 2025 at 0.9%. The GDP forecast for 2026 was revised down to 1.1% from the previously forecast 1.2%.