# Euro zone inflation seen just above ECB’s target in 2025, poll shows
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-02-03
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Euro zone inflation to decline to 2.1% in 2025
Meta Description: Discover the latest forecast on Euro zone inflation, interest rates, and market expectations from the European Central Bank's recent survey of economists.
URL: https://financedigest.com/euro-zone-inflation-seen-just-above-ecbs-target-in-2025-poll-showshtml

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FRANKFURT (Reuters) – Euro zone inflation is set to decline to 2.1% in 2025, just a shade above the European Central Bank’s target, an ECB poll of economists forecast on Friday.

The ECB raised interest rates for the fifth straight time on Thursday and signalled more hikes ahead, reaffirming it would stay the course in the fight against high inflation.

Its Survey of Professional Forecasters, which ECB policymakers use as a key gauge of market expectations, showed economists were expecting the euro zone central bank to eventually conquer inflation – but not before another two years.

Poll respondents [put inflation](https://www.financedigest.com/boes-bailey-says-rate-setters-can-put-inflation-before-bank-worries.html "BoE’s Bailey says rate-setters can put inflation before bank worries") at 5.9% this year and 2.7% the next, a slight increase from the previous survey round in October, the survey showed.

According to respondents, these changes mainly reflect a combination of recent data outturns, ongoing stronger and broader than [expected indirect effects of energy price developments as well as higher forecast wage growth,” the ECB](https://www.financedigest.com/hawkish-ecb-comments-push-up-rate-hike-expectations.html "Hawkish ECB comments push up rate-hike expectations") said.

They then [expected inflation](https://www.financedigest.com/dollar-drops-as-inflation-cools-more-than-expected.html "Dollar drops as inflation cools more than expected") to fall to 2.1% in 2025, which was not part of the survey in October, and stabilise there in the long term, the survey showed.

(Reporting By Francesco Canepa; Editing by Alex Richardson)


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