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ZEW Inflation Expectations Surveys Are Pricing A Disinflationary Environment

GLOBAL
  • Even though the inflation topic is still 'hot' as inflationary pressures continue to remain elevated in most of the DM/EM economies, the charts below show some interesting pattern between the ZEW inflation expectations surveys (6M Lead) and Euro and US CPI.
  • The ZEW surveys are conducted every month and gather views from up to 300 experts from the finance services industry where participants are asked their 6M expectations on the economy, inflation, rates, stocks in different region of the world.
  • ZEW surveys have generally been used as leading indicators by many macro analysts, and the ZEW inflation expectations surveys are pricing in a deceleration in inflation in the medium term.
  • Is inflation peaking in the DM world?

Source: Bloomberg/MNI

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