MNI BRIEF: Commission Sees Inflation Closer To ECB Target
Inflation is expected to average very close to 2% through 2025, the European Commission's latest forecasts show.
Euro area inflation is seen just above the ECB's 2% target by the end of 2025, the European Commission's latest round of forecasts suggests.
According to the EC's Spring Forecast, headline inflation will average 2.5% in 2024 and 2.1% in 2025 - both lower than the Autumn forecasts of 3.2% and 2.2% respectively. The ECB's inflation target is 2% over the medium term and its own latest projection -- with an update expected in a few weeks -- is for inflation to be at target in mid-2025 and at 1.9% by end-2026. (MNI INTERVIEW: ECB's Wunsch Sees At Least Two Cuts By Dec)
The Commission also sees core inflation, whether on its own or the ECB's preferred measure, averaging 2.1% by end 2025, marked lower from previous forecasts by weaker pressures in core goods prices.
Source: European Commission