MNI BRIEF: Eurozone Consumer Inflation Expectations Edge Up

Inflation expectations amongst eurozone consumers edged higher again in August, the ECB's latest survey showed, with the outlook for prices three years ahead rising to 2.5%.

Median expectations for inflation over the next 12 months edged up to 3.5%, from 3.4%. The three -years ahead expectation rose for the second consecutive month, up from 2.4% in July. Inflation expectations remained well below the perceived past inflation rate, particularly at the three-year horizon.

The median rate of perceived inflation over the previous 12 months edged down to 7.9% from 8.0%. Uncertainty about inflation expectations over the next 12 months declined to the lowest level observed since March 2022, the survey showed.

Inflation across the eurozone stood at 4.3% in September, the latest preliminary release from Eurostat showed (MNI BRIEF: Eurozone Inflation Slows Again To 4.3% in Sept).