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US Tariffs to Drag Euro-Area Inflation Below ECB Target, EU Forecast Shows
US Tariffs to Drag Euro-Area Inflation Below ECB Target, EU Forecast Shows
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The European Commission’s spring forecast reveals a stark downward revision for Eurozone inflation, with prices now expected to dip to 1.7% by 2026—below the ECB’s 2% target. US trade measures emerge as a key deflationary force, accelerating the decline post-2025.
Multiple pressure points converge in the revised outlook: weakening demand, supply chain normalization, and energy market stabilization compound tariff impacts. The projection suggests prolonged accommodative policies may be required to anchor expectations.
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