BCE cuts inflation forecast to 2% in 2025.
In line with the initial goal of price stability, the European Central Bank (ECB) cut the average inflation forecast to 2% in the eurozone by 2025. Understand what is at stake.
While you don't see prices drop... check your expenses. Reduce your monthly payments with loans and insurance from Poupança no Minuto! Contact us and learn more. But first, read the ECB's inflation forecasts.
BCE predicts: Inflation at 2.3% in 2024 and 2% in 2025
The European Central Bank, in a press conference after the Council meeting, announced that it revised downwards the projection of the average inflation rate for the euro area, pointing to 2.3% in 2024 and 2% in 2025, reaching 1.9% in 2026.
This forecast for 2024 reflects a reduction of four tenths, which is closer to the ECB's medium-term goal of 2%.
ECB President Christine Lagarde explains that the inflation rate in January was 2.8% and expects it to have slowed down to 2.6% in February, predicting a downward trend in the coming months.
"The long-term inflation expectations remain globally stable, with most around 2%," said the leader, as quoted by Notícias ao Minuto.
However, it is important to highlight the existence of risks on the upside, such as increasing geopolitical tensions, like in the Middle East, which could cause energy prices and transportation costs to increase in the short term, impacting global trade.
Another aspect that could increase the inflation rate is if salaries increase more than expected or profit margins prove to be more resilient.
However, the rate may also "surprise downwardly if monetary policy restrains demand more than expected, or if the economic environment in the rest of the world unexpectedly worsens," the news reads, emphasizing that risks to economic growth remain tilted downward.
For example, "growth could be lower if the effects of monetary policy turn out to be stronger than expected. A weaker global economy or a new slowdown in world trade would also weigh on growth in the euro area," it also reads.
The news is good, but it can be even better: while prices don't drop, there are options you can turn to stretch your monthly budget.
If you have credits and/or insurances, you can reduce the amount of monthly payments you make by negotiating the conditions of the contracts, or by transferring them. You can rely on the credit intermediation and insurance mediation service from Poupança no Minuto for all these processes! Contact us to simulate your case, and ensure a monthly saving on your expenses.