Spain's central bank on Friday in Madrid marked up its inflation view to 3.9% for this year and expects the rate to slow to 3.7% in 2027, well above its previous 2.6% estimate. It also sees the economy holding up better than many expected: gross domestic product is set to rise 2.6% in 2024 and 2.2% in 2027, with both figures higher than in June. For context, inflation across the euro area is projected at 3% in 2026. Central bank forecasts set expectations for wages and borrowing costs. Market Briefs covers European inflation free every weekday . "Energy prices have risen across the board, driving inflation higher," the Bank of Spain said.
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