Economy
ECB expects slower decline in inflation
The euro currency keepers look at the economy in the currency area with growing concern. According to the latest assessment, the rate of inflation will not decrease as quickly as expected in December.
Trüber’s economic prospects for the euro area: The European Central Bank (ECB) only promises the economy in the currency area in the current year. In December, the central bank had already reduced its expectations by 0.2 percentage points to 1.1 percent.
For 2026, the ECB is now expecting an increase in gross domestic product (GDP) in the 20 countries with the community currency by 1.2 percent. In December, the forecast was even more optimistic with 1.4 percent. For 2027, the central bank predicts 1.3 percent growth.
According to the central bank, the inflation in the euro area will decrease more slowly than recently expected. For the current year, the ECB expects an inflation rate of 2.3 percent, in December the central bank had predicted 2.1 percent.
For 2026, the ECB continues to expect an average increase in consumer prices in the euro area by 1.9 percent. For 2027, the central bank predicts an annual inflation of 2.0 percent.
The most important task of the ECB is to ensure a stable euro and thus maintain the purchasing power of the people. The central bank reaches its goal of stable prices in the medium term with an inflation rate of 2.0 percent in the euro area.
dpa
Source: Stern
