Euro Zone’s Weaker Price Outlook Bolsters ECB Case to Cut (1)

Euro-area inflation will turn out slower than previously forecast because of higher US tariffs, according to a Bloomberg survey that supports the case for the European Central Bank to cut interest rates this week.

Analysts see consumer-price growth averaging 1.9% in 2026 and 2% in 2027 — a downward revision of 0.1 percentage point for each prediction. They also expect the economy to grow 0.8% this year, slightly less than previously, before momentum picks up.

While the survey doesn’t take into account Donald Trump’s decision to pause higher tariffs on much of the world, it does shed light ...