Live Updates > Live Update Details
2025-12-18 21:17:37
[Inflation Path Slightly Revised Upward, Growth Forecasts Raised Across the Board, ECB Demonstrates Policy Resolve] ⑴ The ECB's latest staff forecasts show that overall inflation is projected to average 2.1% in 2025, 1.9% in 2026, 1.8% in 2027, and 2.0% in 2028. ⑵ The updated assessment reaffirms that inflation should stabilize at the 2% target over the medium term. ⑶ Core inflation, excluding energy and food, is projected to average 2.4% in 2025, 2.2% in 2026, 1.9% in 2027, and 2.0% in 2028. ⑷ Notably, the 2026 inflation forecast has been slightly revised upward, primarily because staff now expect a slower decline in service prices. ⑸ Meanwhile, economic growth forecasts have been revised upward across the board compared to the September forecasts, mainly driven by domestic demand, with projected growth of 1.4% in 2025, 1.2% in 2026, and 1.4% in both 2027 and 2028. (6) The European Central Bank reiterated its commitment to ensuring inflation remains stable at its 2% target over the medium term. (7) This series of forecasts paints a picture of "moderately declining inflation and more resilient economic growth," providing data support for the ECB to maintain current interest rates and not rush into further easing.
