euronews.com
European Inflation Outlook: 2025-2027
The 2024 Eurozone inflation of 2.4% is expected to decrease to 2.0% in 2025, 1.6% in 2026, and rebound to 2.0% in 2027, while nearly half of 30 European countries will see inflation rise by the end of 2025, according to the OECD and ECB projections.
- What are the key inflation projections for the Eurozone in 2025, 2026, and 2027, and what factors contribute to these projections?
- The ECB projects Eurozone inflation at 2.0% in 2025, 1.6% in 2026, and 2.0% in 2027. Energy inflation is expected to remain negative until the end of 2026, rebounding in 2027 due to climate change fiscal measures. Global trade tensions and US tariff threats also influence the outlook.
- How do the projected inflation changes vary across European countries in 2025, and what are the primary drivers of these variations?
- In 2025, almost half of the 30 European countries with data will see inflation rise compared to 2024. Lithuania (0.9% to 4%) and Latvia (1.4% to 3.6%) show the largest increases, driven by rising food and energy prices in Lithuania and strong wage growth and high core inflation in Latvia. Turkey shows a significant decrease (58.5% to 31.4%).
- What are the broader economic implications of the projected inflation trends in Europe, and what are the potential long-term effects?
- The slowdown in real disposable income growth in the Eurozone (2.2% in 2024 to 0.8% in 2025) reflects the impact of inflation on household spending. US tariffs and trade uncertainty negatively affect global economic activity and could increase inflation. Long-term effects depend on the success of fiscal and monetary policies in mitigating inflation and supporting economic growth.
Cognitive Concepts
Framing Bias
The article presents a balanced overview of inflation in Europe, covering various countries and perspectives. While it highlights concerns about rising inflation, it also presents data showing declining inflation in several countries and offers context regarding factors contributing to these changes. The focus on household impact is relevant and relatable, but doesn't overshadow the broader economic analysis.
Language Bias
The language used is largely neutral and objective. The article relies on statistical data and quotes from official reports (like the ECB and OECD) to support its claims. There is no evident use of loaded language or emotionally charged terms.
Bias by Omission
The article could benefit from including additional perspectives, such as those from economists outside of the ECB and OECD. While the scope is wide, a more diverse range of voices might enhance the analysis. Additionally, the article's focus is primarily on inflation; exploring other macroeconomic indicators impacting European economies could provide a fuller picture. The omission is understandable given the article's focus.
Sustainable Development Goals
The article highlights rising inflation rates across Europe, impacting household disposable income. Higher inflation disproportionately affects low-income households, exacerbating existing inequalities. While not directly addressing inequality reduction initiatives, the economic conditions described negatively impact efforts to reduce income disparities.