IFO survey: Mid-term inflation is expected to be higher than the target of the European Central Bank

On October 16, Jin10 Data reported that a survey conducted by the German think tank IFO showed that economists expect the medium-term inflation rate to remain above the 2% target of the European Central Bank. The European Central Bank will hold its next monetary policy meeting this week. A quarterly survey conducted by IFO and the Swiss Institute of Economic Policy Research shows that economists expect the inflation rate in the eurozone to reach 2.6% this year. IFO predicts that Germany’s inflation rate this year will reach 2.4%, Austria’s will be 3.1%, and France’s will be 2.3%. Niklas Potrafke, a researcher at IFO, said in a statement, ‘In the medium term, inflation is expected to exceed the European Central Bank’s target of 2%.’ He added, ‘Due to stagnant inflation expectations, the Central Bank may not further cut interest rates.’ However, it is widely expected that the European Central Bank will further cut interest rates this week. European Central Bank President Lagarde has said that confidence in the decline in inflation will be reflected in the Central Bank’s decisions.