2023-05-11 21:43:10
How will prices develop in the coming months and years? What consumers can expect in the Eurozone.
According to a survey by the European Central Bank (ECB), consumers in the eurozone are expecting higher inflation. The expectations for inflation over a twelve-month horizon increased in March from 4.6 to 5.0 percent, as the ECB announced on Thursday in Frankfurt. The expectation for inflation in three years rose from 2.4 to 2.9 percent.
The ECB announced that inflation expectations had increased significantly. In the months before, however, they had tended to fall from a high level. Not only inflation expectations, but also consumer perceptions of inflation and uncertainty about future inflation trends rose in March.
The ECB is aiming for inflation of two percent in the medium term. Although the high level of inflation has tended to fall in recent months, it has recently risen slightly to 7.0 percent. The ECB has raised its key interest rates significantly since mid-2022. Further increases are in prospect, although the extent is uncertain.
The Consumer Expectations Survey is published monthly. Around 14,000 people from Germany, France, Italy, Spain, the Netherlands and Belgium will be surveyed. The countries account for around 85 percent of economic output in the euro zone. Inflation expectations play an important role in the ECB’s monetary policy. (dpa)
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