Rising consumer price expectations across the eurozone will be of concern to the ECB.
inflation expectations amongst the general public are edging higher across the eurozone, the European Central Bank's June Consumer Expectations Survey shows, with the outlook for the coming 12 months edging up to 5.0% from 4.9% in April. Over the longer three year horizon, prices are seen rising 2.8%, up from 2.5% in the previous report.
The survey, which uses high-frequency data on household perceptions and expectations, currently focuses on Germany, France, Italy Spain, Belgium and The Netherlands, with plans to add further countries in months ahead.
ECB policymakers will be looking closely at consumer price expectations, as they look to cut off higher prices becoming embedded. The bank hiked 50 bps in July to bring the deposit rate out of of negative territory for the first time since 2014.