ECB reports that consumers anticipate decreasing levels of inflation.
People in the Eurozone are now expecting a lower rate of inflation, as per a recent survey conducted by the European Central Bank (ECB). The median expectation for the inflation rate in the coming year stands at 2.9%, which is the lowest since September 2021. In contrast, in the previous survey conducted in March, they predicted a 3.0% inflation rate for the same duration. Furthermore, consumers now anticipate an inflation rate of 2.4% over a period of three years, down from the earlier expectation of 2.5% in April.
Inflation in the Eurozone has now reached a level close to the ECB's target of 2.0%, as it was at 2.4% in April. It is expected that the ECB will lower its interest rates during their upcoming rate-setting meeting on June 6, as long as there are no unexpected events. However, it is unclear what will happen after June.
The ECB uses the results of this monthly survey as a key indicator of the inflation situation in the euro area. The survey involves approximately 19,000 participants from several euro member countries, including Germany, France, and Italy.
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Source: www.ntv.de
