Finance
Euro zone consumers raise near-term inflation expectations, ECB survey shows
Published by Global Banking & Finance Review®
Posted on May 28, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 28, 2025
1 min readLast updated: January 23, 2026
Euro zone consumers foresee a rise in short-term inflation to 3.1%, surpassing the ECB's 2% target, amid global trade tensions.
FRANKFURT (Reuters) -Euro zone consumers raised their inflation expectations in April but kept a steady view on price growth further out, highlighting elevated uncertainty amid a global trade war, the ECB's Consumer Expectations Survey showed on Wednesday.
Households see inflation at 3.1% over the next year, above the 2.9% predicted a month earlier and also well above the ECB's 2% own target.
That reading, however, goes counter to the ECB's own projections that price growth was set to slow given weak economic growth, muted wage increases, lower energy costs and a stronger euro.
This combination of muted price pressures along with pervasive uncertainty related to U.S. tariffs is why the ECB is all but certain to cut interest rates for the eight time in 13 months next week.
Inflation expectations three and five years out remained unchanged, the ECB said, based on a survey of 19,000 adults in 11 euro zone countries.
Consumers see price growth at 2.5% in three years and at 2.1% in five years.
(Reporting by Balazs KoranyiEditing by Bernadette Baum)
Households see inflation at 3.1% over the next year, which is above the 2.9% predicted a month earlier and significantly higher than the ECB's 2% target.
Inflation expectations for three and five years out remained unchanged, with consumers predicting price growth at 2.5% in three years and 2.1% in five years.
The ECB is likely to cut interest rates due to muted price pressures and uncertainty related to U.S. tariffs, despite consumers raising their short-term inflation expectations.
The ECB's survey was based on responses from 19,000 adults across 11 euro zone countries.
The ECB's own projections suggest that price growth is set to slow, influenced by weak economic growth, muted wage increases, and lower energy costs.
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