Finance
Euro zone inflation expectations rise, ECB survey shows
Published by Global Banking and Finance Review
Posted on April 29, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on April 29, 2025
FRANKFURT (Reuters) -Euro zone consumers raised their inflation expectations for the coming years in March, before the U.S. imposed tariffs on most nations, launching a global trade war that could sap economic growth, a European Central Bank survey showed on Tuesday.
Inflation over the next 12 months was seen at 2.9%, up from 2.6% in the previous month's survey. The three-years-ahead figure rose to 2.5% from 2.4%, the ECB said based on a survey of 19,000 consumers in 11 euro zone nations.
While such a rise would normally worry the ECB, the figures predate the U.S. tariffs, which have fundamentally changed the global economic outlook.
The euro has strengthened, energy prices have fallen and economic growth is likely to be weaker, factors that are all likely to lower price growth. In addition, China, facing reduced access to the U.S. market, could also dump cheap goods on Europe, lowering inflation further.
The outlook has changed so much that the ECB cut interest rates again in April, warning about weak growth. Some policymakers even see a risk the ECB will again undershoot its 2% inflation target.
The changes are also unlikely to be temporary and the world is facing a profound shift in how nations interact economically, financially and diplomatically, the ECB has argued.
(Reporting by Balazs Koranyi; Editing by Aidan Lewis)