The European Central Bank (ECB) upgraded its inflation forecasts for the euro zone from 2023 to 2025, worsening its estimate of GDP growth in the next two years.
According to new forecasts released by the ECB at its meeting on Thursday, consumer price growth in the euro zone will be 5.4% this year, 3% next year and 2.2% in 2025. In March, inflation was expected to be 5.3%, 2.9% and 2.1%, respectively.
Core inflation, which excludes food and energy costs, is expected to be 5.1% this year before slowing to 3% in 2024 and 2.3% in 2025.
The forecast for euro area GDP growth for 2023 has been lowered to 0.9% from the previously assumed 1%, and for next year to 1.5% from 1.6%. The estimate of the economic growth rate in 2025 remained unchanged at 1.6%.
