The European Central Bank confirmed today, Tuesday, that inflation in the Eurozone will remain higher than expected over the next two years, based on the results of the analysts’ survey for the second quarter of 2025. Analysts have raised their forecasts for overall inflation, now expecting it to reach 2.2% in 2025 and 2.0% in 2026, an increase of 0.1 percentage points for each year compared to previous estimates earlier this year. Projections for 2027 indicate that inflation will stabilize at 2.0%, according to the Consumer Price Index, the measure used by the European Central Bank to monitor inflation.
At the same time, core inflation expectations also rose, reaching 2.0% in the long term — a slight upward revision compared to the previous survey. As for long-term overall inflation, it remained steady at 2.0%, reflecting the Bank’s view that while prices are unlikely to accelerate significantly, the pace of inflation decline will be slower than previously anticipated.
On the economic performance front, data showed a decline in forecasts for Eurozone GDP growth. Analysts now expect real economic growth to reach just 0.9% in 2025, down by 0.1 percentage points from previous estimates, while growth is expected to be 1.2% in 2026, also 0.1 percentage points lower. However, the outlook slightly improves for 2027, with growth projected at 1.4%, a modest increase of 0.1 percentage points. In the long term, growth expectations remain steady at 1.3%.
As for the labor market, there was a slight improvement in expectations, with the average unemployment rate expected to be around 6.3% during the 2025–2027 period, and to decline to 6.2% over the long term.
