Eurozone consumers more optimistic about inflation
According to the monthly survey published by the ECB with 14 thousand participants from the largest countries of the Euro Zone, the 12-month inflation expectation, which was 5 percent in March, rose to 4.1 percent in April, and the 3-year expectation to 2.9 percent. dropped to 2.5.
Although inflation in the Euro Zone fell from double digits to 6.1 percent in May, and core inflation fell to 5.3 percent, above the forecasts, it is still well above the ECB’s 2 percent target. The European Commission’s survey of inflation expectations also showed that inflation expectations for next year fell to the lowest level since 2020.
Speaking to Bloomberg this week, Board Member Boris Vujcic said price pressures are on the upside.
Investors and most economists expect the banks to raise the deposit rate to 3.75%, by increasing interest rates by 25 basis points each, two more times.
In her speech yesterday, ECB President Christine Lagarde gave the message that interest rate hikes would continue to keep prices under control.
