Updated
Updated · Bloomberg · Jun 27
ECB Says Euro-Area 1-Year Inflation Expectations Fell to 3.5% in May
Updated
Updated · Bloomberg · Jun 27

ECB Says Euro-Area 1-Year Inflation Expectations Fell to 3.5% in May

3 articles · Updated · Bloomberg · Jun 27

Summary

  • 3.5% was the inflation rate euro-area consumers expected over the next 12 months in May, down from 4% in April in the ECB’s monthly survey.
  • The drop came even before a deal was reached to end hostilities in the Middle East, suggesting easing near-term price fears despite recent geopolitical tensions.
  • Longer-term gauges that matter more for ECB policy stayed elevated rather than falling, with three-year expectations at 2.9% and five-year expectations at 2.4%.

Insights

Why did the ECB raise interest rates if consumers expect inflation to cool down?
As war drives prices, can Europe's central bank tame inflation without triggering a major recession?