(Reuters) – Economists expect inflation rates to remain above the European Central Bank’s 2% target in the medium term, according to a survey published by Germany’s Ifo institute on Wednesday, a day before the bank central bank holds its next monetary policy meeting.
In the eurozone, economists expect inflation to reach 2.6% this year, according to the quarterly survey conducted by Ifo together with the Swiss Economic Policy Institute.
In Germany, inflation this year is expected to reach 2.4%, in Austria 3.1% and in France 2.3%, Ifo said.
“Inflation is also expected to exceed the European Central Bank’s target of 2% in the medium term,” Ifo researcher Niklas Potrafke said in a statement, adding: “Due to these stagnant inflation expectations, central banks could stop further cuts in interest rates”. “.
However, the ECB is expected to make a further interest rate cut this week, and ECB chief Christine Lagarde said confidence in falling inflation would be reflected in the bank’s decision.