Financial News: Eurozone Inflation Expectations Rise In Q2: ECB Survey

Eurozone Inflation Expectations Rise In Q2: ECB Survey

04/22/2025 - 06:47:00 (RTTNews)

(RTTNews) - Eurozone inflation expectations increased in the second quarter on higher tariffs and planned defense spending, a survey conducted by the European Central Bank showed on Tuesday.

Inflation is expected to be 2.2 percent this year compared to 2.1 percent projected in the first quarter, the Survey of Professional Forecasters said.

Similarly, the projection for next year was raised to 2.0 percent from 1.9 percent. However, the outlook for 2027 was retained at 2.0 percent.

Expectations for core inflation were revised up slightly across all horizons. Core inflation is seen at 2.3 percent 2025 and 2.1 percent each in 2026 and 2027.

Survey respondents downwardly revised its growth projection for this year and next.

Real GDP growth was projected at 0.9 percent in 2025, which was revised down from 1.0 percent. Likewise, the outlook for next year was trimmed to 1.2 percent from 1.3 percent.

By contrast, respondents lifted the outlook for 2026 to 1.4 percent from 1.3 percent.

The expected trajectory of the unemployment rate was revised slightly downwards. The unemployment rate was expected to average 6.3 percent from 2025 to 2027, and then to fall to 6.2 percent in the longer term.

The SPF survey for the second quarter was conducted between April 1 and 4 and 54 responses were received.

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