The European Central Bank (ECB) forecasts a faster decline in inflation than anticipated three months ago. Simultaneously, the economic outlook has dimmed, as outlined in the bank's recent Thursday release.

This year, the ECB now anticipates an inflation rate of 5.4%, adjusting from the previous estimate of 5.6% in September. Looking ahead to 2024, the bank foresees a softer inflation rate of 2.7% (compared to the September forecast of 3.2%). For 2025, a steady rate of 2.1% is expected, while the first-ever 2026 forecast predicts an average inflation rate of 1.9%.