Professional forecasters expect eurozone headline inflation to settle at 2.0% by 2028, down from 2.7% for the current year and 2.2% for 2027, according to the latest European Central Bank Survey of Professional Forecasters.
The downward revision in expectations signals that market participants increasingly view the current disinflationary trend as durable, aligning with the ECB’s mandate to maintain price stability.
The updated projections provide fresh data points for policymakers as they assess the trajectory of monetary policy.
With inflation expectations moderating toward the central bank’s target, the survey results add empirical weight to arguments for maintaining an accommodative stance.
This aligns with recent commentary from ECB executive board members, who have noted that inflation is receding and economic prospects are improving, suggesting that the path for continued easing remains open.
For investors, the shift in forecasters’ views underscores a broader normalization of the macroeconomic environment in the euro area.