MNI BRIEF: ECB Survey Sees Inflation Below Target in 2025,
MNI (LONDON) - Inflation expectations for the next two years remain firmly anchored at or just below 2%, the ECB's survey of professional forecasters' showed on Friday.
Expectations were for inflation of 2.4% for the whole of 2024 and at a below-target 1.9% for both 2025 and 2026 -- unchanged except for a 0.1-percentage-point downward shift for 2025. Longer-term inflation expectations, for 2029, were unchanged at 2.0%, the survey showed.
The survey was broadly in line with ECB expectations, which are for inflation sustainably back at the 2% target some time in 2025 and at 1.9% in 2026. (See MNI ECB WATCH: ECB Cuts 25, Keeps Meeting-By-Meeting Approach )
Survey expectations for core HICP inflation were revised upwards slightly for 2024, reflecting data outturns and more persistent-than-expected services inflation, but were unchanged thereafter at 2.2% and 2.0% respectively. Longer-term expectations for core HICP inflation were unchanged at 2.0%.
SOURCE: ECB Survey of Professional Forecasters