ECB forecasters raise 2026-27 inflation outlook on energy prices
The ECB's Q4 2026 Survey of Professional Forecasters shows near-term inflation and growth expectations revised upward, driven mainly by energy prices. This matters for anyone tracking the ECB's policy trajectory, since longer-term anchoring at 2.0% suggests the Governing Council may read this as a transitory shock rather than a structural shift.
- Headline HICP inflation expectations stand at 3.0% for 2026, 2.6% for 2027 and 2.0% for 2028, revised up by 0.3 and 0.4 percentage points for 2026 and 2027 respectively.
- Longer-term inflation expectations for 2031 remain anchored at 2.0% for both headline and core inflation.
- Real GDP growth expectations were revised up to 1.0% in 2026, with 1.3% expected in both 2027 and 2028.
- Unemployment rate expectations rose slightly to 6.4% for 2026 before declining gradually to 6.1% in the longer term.
- The survey was conducted between 2 and 7 October 2026 and received 52 responses from experts at financial and non-financial institutions in Europe.