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1Y Inflation Expectations Rise to 4.0%

EUROZONE DATA

Consumer inflation expectations across the eurozone for the next 12 months picked up sharply in September, even as actual headline rates declined to near 2-year lows, the ECB's monthly Consumer Expectations Survey showed.

  • The outlook for prices over the coming 12 months rose to 4.0% in September, up from 3.5% in August.
  • However, the outlook for prices 3 years ahead was unchanged at 2.5%. In September, actual headline HICP inflation slowed to 4.34% while the October flash was 2.91% Y/Y.
  • ECB policymakers will eye the pick-up in near term expectations nervously, but there will be some relief that the longer-term outlook for consumers remains anchored around 2.5% for now.

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