MNI BRIEF: EZ Professional Forecast Sees 25 Inflation Higher

Professional forecasters -- analysts at leading banks and financial institutions -- have raised their headline eurozone inflation outlook for 2025, but longer-term expectations are unchanged on Q4, an ECB survey shows.

According to the Q1 Survey of Professional Forecasters, headline inflation will average 2.1% in 2025, up from 1.9% in the Q4 survey. All the longer-term forecasts were unchanged, with 2026 at 1.9% and "longer-term" at 2.0%. A forecast for 2027 was included for the first time, at 2.0%, lower than the ECB staff forecast of 2.1% due to increased greening impacts.

Core inflation expectations were unchanged in the near-term, but edged slightly higher five years out.