According to the European Central Bank's (ECB) latest survey of Professional Forecasters, eurozone inflation may be slightly higher than expected this year. The updated outlook for 2025 has been raised from 2.1% to 2.2%, while the forecast for 2026 has been upgraded from 1.9% to 2.0%, bringing the ECB closer to its target.
These figures require cautious interpretation, given the significant changes in financial markets that have taken place since the end of collecting data on April 4. A much stronger euro and lower energy prices, which have been seen recently, may put additional downward pressure on inflation. Meanwhile, trade barriers introduced by the United States may create risks of an economic growth slowdown, according to Reuters.
At the end of March, the surveyed experts only slightly adjusted their economic growth outlook for 2025, lowering it to 0.9% from 1.0%. ECB President Christine Lagarde recently warned of potential negative consequences of escalating trade tensions, which could reduce the region's GDP growth by 0.5 percentage points.