Inflation remains stubborn. Economic experts predict that inflation rates will continue to miss the ECB’s targets in the medium term. This is likely to have an impact on interest rates.
Economists from all over the world expect inflation rates to continue to be too high. The Munich Ifo Institute and the Institute for Swiss Economic Policy surveyed 1,514 experts from 119 countries in September and October. Accordingly, 2.4 percent is expected in Germany this year, 2.6 percent in the Eurozone, 2.7 percent in North America and 4.0 percent worldwide.
Inflation above the European Central Bank’s target of two percent is also expected in the medium term, says Ifo researcher Niklas Potrafke. Due to these stagnating inflation expectations, central banks could hold back on further interest rate cuts.
Consumer prices are expected to rise by 2.3 percent in Germany in 2025 and by 2.2 percent in 2027. In Western Europe, experts see inflation at 2.1 percent in 2027, in Northern Europe at 2.7, in Southern Europe at 3.0 and in Eastern Europe at 5.9 percent, in North America at 2.4 percent.
Source: Stern
