Euro-area companies have lowered their one-year inflation outlook to 2.5% from 2.9%, according to the European Central Bank’s latest Survey on the Access to Finance of Enterprises. Expectations for inflation three and five years ahead were unchanged at 3.0%. The poll, conducted between late May and late June among more than 5,300 firms, shows monetary easing filtering through: a net 14% of respondents reported lower interest rates on bank loans. Financing needs and availability were broadly stable, leaving the perceived bank-loan funding gap little changed. Trade frictions remain a significant drag. Most firms said they are affected by the US tariff regime that took effect in April, with manufacturers and companies exporting to the United States feeling the greatest strain. Many businesses are redirecting sales toward domestic and EU markets or reshaping supply chains to cope with the new environment.