{"id":9711,"date":"2025-03-17T12:22:11","date_gmt":"2025-03-17T16:22:11","guid":{"rendered":"https:\/\/thetimesfinancial.com\/?p=9711"},"modified":"2025-03-17T12:22:18","modified_gmt":"2025-03-17T16:22:18","slug":"euro-area-inflation-to-hit-ecbs-2-target-by-end-of-2025","status":"publish","type":"post","link":"https:\/\/thetimesfinancial.com\/?p=9711","title":{"rendered":"Euro-Area Inflation to Hit ECB\u2019s 2% Target by End of 2025"},"content":{"rendered":"\n<p><strong>Eurozone inflation<\/strong> is expected to return to the <strong>European Central Bank\u2019s (ECB)<\/strong> 2% target by the end of 2025, according to <strong>Joachim Nagel<\/strong>, a member of the ECB\u2019s <strong>Governing Council<\/strong> and president of the <strong>Bundesbank<\/strong>.<\/p>\n\n\n\n<p>\u201cWe will achieve price stability this year,\u201d Nagel told the <strong>BBC<\/strong> in an interview. \u201cWe are back to our target at the end of this year \u2014 this is good news.\u201d<\/p>\n\n\n\n<p>The ECB had previously projected inflation reaching its 2% goal by <strong>early 2026<\/strong>, but recent declines in <strong>energy prices<\/strong> have contributed to an earlier-than-expected return to stability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Economic Outlook: Europe\u2019s Investment Push<\/h2>\n\n\n\n<p>As European countries plan to increase <strong>military and infrastructure spending<\/strong>, Nagel expressed optimism about the economic opportunities such investments could create.<\/p>\n\n\n\n<p>\u201cNow is this window of opportunity to do more in Europe,\u201d he said. \u201cWe should have more Europe and not less Europe,\u201d emphasizing that such spending should extend beyond just <strong>defense<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Germany Faces Risks from US Tariffs<\/h2>\n\n\n\n<p>Nagel also highlighted the significant risks posed by <strong>President Donald Trump\u2019s trade tariffs<\/strong>, particularly for Germany, which relies heavily on <strong>exports<\/strong>.<\/p>\n\n\n\n<p>\u201cWhen you are exposed to an export-oriented model, then you are more exposed in a situation when tariffs are going up and there are so many uncertainties, so many unknowns,\u201d Nagel warned.<\/p>\n\n\n\n<p>He further cautioned that rising <strong>trade barriers<\/strong> could lead to an <strong>economic downturn<\/strong> in Germany and possibly trigger a <strong>recession<\/strong> later this year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Outlook: Balancing Growth with Trade Uncertainty<\/h2>\n\n\n\n<p>While Europe\u2019s efforts to bolster infrastructure and military capabilities present growth opportunities, the <strong>looming impact of US tariffs<\/strong> on the region\u2019s largest economy remains a key concern.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Eurozone inflation is expected to return to the European Central Bank\u2019s (ECB) 2% target by the end of 2025, according to Joachim Nagel, a member of the ECB\u2019s Governing Council and president of the Bundesbank. \u201cWe will achieve price stability this year,\u201d Nagel told the BBC in an interview. \u201cWe are back to our target [&hellip;]<\/p>\n","protected":false},"author":10772,"featured_media":9712,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[1207,1208,533,454,1209,800,1210],"class_list":{"0":"post-9711","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance","8":"tag-ecb","9":"tag-euro-area-inflation","10":"tag-european-economy","11":"tag-germany-recession","12":"tag-joachim-nagel","13":"tag-trade-tariffs","14":"tag-us-trade-policy"},"_links":{"self":[{"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/posts\/9711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/users\/10772"}],"replies":[{"embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9711"}],"version-history":[{"count":1,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/posts\/9711\/revisions"}],"predecessor-version":[{"id":9713,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/posts\/9711\/revisions\/9713"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/media\/9712"}],"wp:attachment":[{"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}