London, Bollywood Fever: Inflation in the euro zone is expected to continue its downward trend in the coming years, potentially dipping below the European Central Bank‘s (ECB) 2% target by 2026, according to a survey released by the ECB on Friday.
The ECB has been grappling with inflation rates exceeding its target for years, leading to record-high interest rate hikes last year in an effort to control price pressures. Despite these measures, it may still take until the end of 2025 to achieve the bank’s inflation goal.

The ECB’s quarterly Survey of Professional Forecasters, which influences policy deliberations, predicts that inflation will slow even faster than ECB staff projections and stabilize around the target. The survey suggests that inflation could average 2.4% this year, consistent with predictions from three months ago, and slow to 2.0% next year, both figures being lower than the ECB’s internal forecasts.
By 2026, the survey indicates that inflation could fall to 1.9%, before settling at 2% over the long term, defined as 2028.
On Thursday, the ECB left interest rates unchanged but indicated the possibility of further policy easing, citing weak economic growth which could reduce price pressures. Survey respondents adjusted their growth projection for this year to 0.7%, up from 0.5%, but lowered next year’s forecast to 1.3% from 1.4%.
These findings reflect cautious optimism about achieving inflation targets while highlighting ongoing economic challenges in the euro zone.
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