ECB Survey: Eurozone Inflation to Fall Quickly Next Year

The European Central Bank (ECB) released its latest survey on inflation expectations for the Eurozone, showing that prices are expected to fall quickly next year before returning to the 2% target in 2028. The survey, which is a key input in policy deliberations, found that inflation averaged 2.7% this year, unchanged from the previous projection.

The ECB's primary focus has been on inflation, which has been running at about 3% for months due to surging energy costs. However, most economists believe that price growth is close to peaking and will decline back towards the target sometime in 2027.

The survey also showed that economic growth in the Eurozone remained lukewarm, with growth this year projected at 0.6%, below the 1.0% projected three months earlier. Next year's growth was lowered to 1.2% from 1.3%.