MNI BRIEF: One-Year Inflation Expectations At 3-Yr Low - ECB
MNI (LONDON) - Consumers expect eurozone inflation to decline to 2.4% over the next 12 months, the lowest level since September 2021, the European Central Bank's September Consumer Expectations Survey showed on Friday.
Expectations for inflation three years ahead also declined, falling 0.2 percentage points to 2.1% -- the lowest since February 2022. Consumers across the bloc perceive the current inflation rate to be 3.4%, down from 3.9% in August but double the level of the 1.7% reported by Eurostat for September.
Uncertainty about inflation expectations over the next 12 months remained unchanged, also at its lowest level since February 2022, the survey showed.
ECB policymakers believe inflation is now heading towards the 2% target sustainably at some point in 2025, and perhaps before the fourth quarter, as foreseen in September projections. This would open the way to further rate cuts in coming months. (See MNI SOURCES: ECB Officials See Rate Expectations As Stretched )