Euro zone consumer expectations for next year’s inflation rose in October, but forecasts for the next three years held steady at a rate still well above the European Central Bank’s 2% target, the ECB said in a statement. monthly survey this Wednesday (7).
Inflation has soared this year on high energy and food prices, and the ECB has been raising rates at a record pace to at least temper long-term expectations.
Median inflation expectations for the next 12 months rose to 5.4% in October from 5.1% in September, while three-year inflation expectations remained unchanged at 3.0%, the ECB said based on a survey of nearly 14,000 people in six of the largest countries in the eurozone.
Inflation hit a record 10.6% in October and dropped to 10% last month, but its decline in early 2023 is expected to be slow before disinflation picks up pace in the second half of the year.
The rise in inflation prospects came even as consumers became more pessimistic about economic growth and employment, the ECB said.
Economic growth expectations for the next 12 months fell to -2.6% from -2.4% in September, while unemployment is seen rising and income growth is expected to keep pace with inflation.
Source: CNN Brasil
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