The European Central Bank (ECB) has confirmed that inflation across the Eurozone will be higher than previously anticipated for the next two years. Its second-quarter 2025 Survey of Professional Forecasters revealed upward revisions to headline inflation forecasts, now predicting a 2.2% rate in 2025 and 2.0% in 2026. Core inflation, which excludes volatile energy and food prices, also saw increases across all timeframes. 2027 saw flat-line inflation at 2.0%. The ECB’s forecasts for long-term headline inflation are locked at 2.0%, indicating a slowdown in price pressures but not a complete easing. 2025 and 2026 GDP growth were also revised down, with analysts now expecting real GDP to expand by 0.9% in 2025 and 1.2% in 2026, respectively. By 2027, the outlook brightens slightly at 1.4%. Long-term GDP growth remains unchanged at 1.3%, suggesting a lack of significant economic acceleration in the near future. Meanwhile, job market forecasts were revised upward with an average unemployment rate projected to be around 6.3% across 2025 to 2027. However, unemployment is expected to fall below 6.2% after 2027. The ECB’s updated projections are a response to the ongoing global economic climate marked by political and economic shifts driven by Donald Trump’s return as US President.