Analyst Migliaccio says the ECB’s latest projections raise inflation forecasts
for 2026-27 as higher energy prices are expected to feed through to food, goods
and services. Growth forecasts were cut as the war’s impact on commodity prices,
real incomes and consumer confidence weighs, producing a severe outlook. Higher
inflation bolsters the ECB’s case for further rate hikes to fulfill its
price-stability mandate, but weaker growth could prompt some member states to
complain of excessive tightening.
