Consumer inflation expectations lower than at any time since September 2021
Consumers in the Eurozone, according to a survey by the European Central Bank (ECB), have lowered their inflation expectations. The median consumers in May expected inflation to be at 2.8% within the next twelve months, as reported by the European Central Bank.
This is the lowest level since September 2021. In the April survey, consumers expected a rate of 2.9% within twelve months. In May, they anticipated inflation of 2.3% over three years. In the April survey, they had anticipated 2.4%.
The inflation rate in the 20-country Eurozone was 2.6% in May. This ECB target of 2.0% that currency watchers consider the optimal level is no longer far off. The ECB eased monetary policy for the first time since almost five years at the beginning of June. However, the ECB leadership has been cautious in commenting on further interest rate developments.
ECB President Christine Lagarde has stated that the ECB will not commit to a specific interest rate path. Instead, decisions will be made data-dependently and from meeting to meeting.
The monthly data on consumers' inflation expectations always provide important indicators to the inflation picture in the Eurozone for currency watchers. Approximately 19,000 people from eleven Euro countries participate in the regular survey - including Germany, France, and Italy.
Consumers, participating in the ECB's regular survey, had their inflation expectations for September at a lower level than in May, as indicated by the European Central Bank. Due to these lowered expectations, the median inflation rate expected by consumers in September is lower than the ECB's target of 2.0%.
