Euro zone inflation may be lower than originally European Central Bank’s projected in the next years. But it may remain above the European Central Bank’s (ECB) 2% objective in the long run

The European Central Bank’s (ECB) has raised interest rates at each of its last seven meetings and has pledged even more tightening to tackle runaway inflation.

ECB Interest Rate Forecast

However, the figure for 2025, the last year in the ECB’s projections, was raised to 2.2% from 2.1%.

The survey’s 2023 progress forecast was raised to 0.6%. But it remains far behind the ECB’s own 1% forecast.

However, at 6.5 percent, unemployment is already well below this level. And ECB policy makers are worried that the labour markets is overheating, prolonging high inflation.