Economists confident euro zone inflation will fall to 2% – ECB poll

By Thomson Reuters Apr 12, 2024 | 3:02 AM

FRANKFURT (Reuters) – Economists are sticking to their view that inflation in the euro zone will fall to 2% and stay there, a European Central Bank poll showed on Friday, in comforting news as the ECB prepares to cut interest rates.

The ECB’s latest Survey of Professional Forecasters (SPF) put inflation at 2.4% this year and 2.0% in 2025, 2026 and in the longer term — unchanged from the previous round of the poll three months earlier.

Revisions to economic growth forecasts were minimal, with GDP seen expanding by 0.5% this year, 1.4% next year and in 2026, and 1.3% thereafter.

The ECB held interest rates at a record high on Thursday but signalled it could start cutting as soon as June, even though stubbornly high U.S. inflation could stop the U.S. Federal Reserve from following close behind.

The SPF’s results are based on responses from 61 economists at European companies and financial institutions polled between March 18 and 21.

(Reporting By Francesco Canepa; Editing by Sharon Singleton)