ECB Sees Euro Zone Inflation Expectations Unchanged Despite Energy Costs

The European Central Bank (ECB) has released its latest survey on inflation expectations for the euro zone, showing that they remain broadly unchanged over the past three months.

The survey indicates that price growth is seen falling quickly next year before returning back to the 2% target in 2028. Inflation has been running at about 3% for months due to surging energy costs, but most economists think price growth is close to peaking and will decline back towards the target sometime in 2027.

The survey shows that inflation averaging 2.7% this year is unchanged from the previous projection, while the 2027 figure was raised to 2.2% from 2.1%. Inflation will then hit 2% in 2028 and stay there.