The European Central Bank has raised its inflation forecast for this year by seven tenths, reaching 2.6%, due to the increase in energy prices from the conflict between the United States and Israel against Iran. At the same time, it has reduced its economic growth estimate for the eurozone by three tenths, leaving it at 0.9%. The revision of the projections indicates that inflation is expected to decrease in 2027, reaching 2%, although this represents an increase of two tenths compared to what was estimated in December. For 2028, inflation is anticipated to be 2.1%, which implies an increase of one tenth compared to the forecast for the end of 2025. Excluding energy and food, the underlying inflation projection has increased by one tenth for 2026, reaching 2.3%, by three tenths for 2027, arriving at 2.2%, and by one tenth for 2028, standing at 2.1%.
The ECB raises the forecasted inflation for 2026 to 2.6% and lowers growth to 0.9% due to the impact of the conflict.
