Consumer inflation expectations in the eurozone for the next three years have eased slightly as of April, providing some relief for the European Central Bank, though policymakers may still proceed with an interest rate hike next week.
The ECB's monthly survey, released on Monday, indicates that price growth over that period is now anticipated to be 2.9%, down from the 3.0% forecast in March.
Inflation expectations for the next 12 months held steady at 4.0%, while the outlook for the next five years remained at 2.4%, a level that continues to exceed the ECB's medium-term inflation target of 2.0%.
In a warning issued Monday, ECB Executive Board member Isabel Schnabel stated that risks of inflation expectations becoming unanchored are rising, suggesting the central bank cannot disregard price surges, primarily in energy costs, triggered by the conflict in Iran.
Officials aim to prevent turbulence in energy markets from spreading to broader consumer prices. Data scheduled for release on Tuesday is expected to show another increase in the eurozone's inflation rate, with analysts projecting a rise to 3.2%.
Comments