An ECB survey published Friday shows euro-area expectations roughly
unchanged over the past three months; prices are expected to fall sharply next
year and return to the 2% target in 2028. The survey, used in ECB policy
deliberations, forecasts average inf this year at 2.7% (unchanged), raises the
2027 forecast to 2.2% from 2.1%, and projects 2.0% for 2028. Most economists
surveyed said inf may have neared its peak and would gradually decline toward
the target sometime in 2027. Energy-driven costs have kept headline inf around
3% in recent months.
