MNI BRIEF: One-Year Eurozone Inflation Expectations Decline
Latest ECB survey shows 12-month price expectations lower and the three-year outlook unchanged.
Euro area inflation expectations for the next 12 months slowed in February, the latest ECB consumer survey showed, easing to 3.1% from 3.3% in the previous month, and now stand at the lowest level since the start of Russia’s war against Ukraine in February 2022.
The median rate of perceived inflation over the previous 12 months also decreased, for a fifth consecutive month, slowing to 5.5% from 6.0% in January, the survey published Tuesday shiowed.
Expectations for inflation three years ahead remained unchanged at 2.5%, the survey showed. Inflation expectations at the one-year and three-year horizons remained well below the perceived past inflation rate. Uncertainty about inflation expectations over the next 12 months remained unchanged. (See MNI INTERVIEW: ECB To Cut 50BP, Then Wait And See- Bini Smaghi)
Eurozone inflation fell to 2.6% in February.