MNI BRIEF: ECB Professional Forecasters' Price Outlook Steady
Latest ECB survey of professional forecasters sees inflation outlook little changed on Q1.
Financial economists and analysts see both headline and core eurozone inflation little changed in Q2 from their forecasts in the previous quarter, the ECB's survey of Professional Forecasters showed on Friday.
Respondents expect headline inflation to decline from 2.4% in 2024 to 2.0% in both 2025 and 2026. They saw labour market tightness and wage growth as high, but these were generally "expected to moderate and underpin the return of both headline and core inflation to 2.0%". Longer-term HICP inflation expectations (for 2028) were unchanged at 2.0%.
On Thursday, the ECB left key interest rates unchanged, but indicated it could ease policy in June if it was confident of a sustainable return to its 2% price target. (See MNI ECB WATCH: On Course For June Cut, Still Data-Dependent)