Decreased slightly the anticipated inflation within the euro zone.
Consumers within the Eurozone's medium-term inflation projections have shown a slight decrease, as indicated by an ECB survey. The median forecast for inflation over the following twelve months was 2.7% in August, reaching its lowest point since September 2021, with a decrease from the previous month's prediction of 2.8%. The predicted inflation rate over a three-year period also decreased, from 2.4% to 2.3%, according to the August survey.
The monthly consumer inflation expectations data serves as a valuable resource for the European Central Bank (ECB) in gaining insight into the inflation landscape within the currency union. Over 19,000 consumers from various Eurozone countries, such as Germany, France, and Italy, contribute to the survey.
Given the decrease in inflation witnessed in June, the ECB had already implemented a rate hike in the subsequent month, leading to speculations about potential additional easing measures in October or perhaps later in the year.
Inflation in France and Spain appears to have significantly decreased in September, hinting at a possible slowdown in the Eurozone's overall inflation trend. The September data report is set to be released on Tuesday, with analysts expecting the Eurozone's inflation rate to dip to 2.0%, reaching the ECB's target directly. The August inflation rate was marginally higher, at 2.2%.
The decrease in inflation expectations among Eurozone consumers, as suggested by the ECB survey, might influence monetary policy decisions within the euro area. The recent trend of decreasing inflation rates in key Eurozone countries, like France and Spain, further emphasizes the importance of the Eurozone's overall inflation trend within the euro area.
