MNI BRIEF: Consumer Inflation Expectations Dip In April - ECB
Latest ECB consumer survey looks at inflation expectations.
Expectations for inflation over the next 12 months fell across the euro area to 2.9% in April, the lowest since September 2021 and down from 3.0% in March, the ECB's consumer expectations survey showed Tuesday.
Inflation expectations three years ahead edged down to 2.4%, from 2.5% in March, with the outlook at both the one-year and three-year horizons below consumers' perceived past inflation rate of 5.0%. Uncertainty about inflation expectations over the next 12 months remained unchanged, the survey showed.
With ECB's June meeting expected to deliver a 25bp cut in the Deposit Facility Rate to 3.75%, consumer inflation expectations will be one of the data points closely watched by the Governing Council in deciding when and by how much rates will be cut in coming months. Vice President Luis de Guindos will discuss the outlook for rates with MNI on June 12. (To register, see here) (Also see MNI SOURCES: Fed, Geopolitics, Feed ECB Caution Over Cuts