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MNI BRIEF:  Forecasters Lower Eurozone Inflation Views - ECB

(MNI) London

Professional forecasters have revised lower both headline and ex-energy and food HICP expectations for eurozone inflation from the previous quarter, the latest ECB survey showed on Friday.

Headline inflation was expected to decline from 2.4% in 2024 to 2.0% in both 2025 and 2026, the Survey of Professional Forecasters showed. Longer-term HICP inflation expectations (for 2028) were also revised down, by 0.1 percentage point, to 2.0%. Inflation in the Eurozone stood at 2.9% in December, with core (ex-energy, food, alcohol and tobacco) inflation at 3.4%. (See MNI SOURCES: "Biggest Minority" Favours ECB June Cut)

Real GDP growth expectations were revised down for 2024 and 2025, while longer-term expectations were unchanged at 1.3%. Unemployment expectations were largely unchanged from the previous survey round. Respondents continued to expect the unemployment rate to increase to 6.7% in 2024 but to decline gradually to 6.5% in 2026 and to remain at 6.5% in the longer term.

Source: ECB

MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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