FRANKFURT (Reuters) – Consumers in the euro zone have revised their inflation expectations upwards for the next 12 months, to 4%, according to a survey by the European Central Bank (ECB) published on Wednesday.
Household inflation forecasts are inherently imprecise, but can influence wage requirements, spending and saving, three essential components of price dynamics.
The ECB’s survey of consumer expectations, carried out in September and published on Wednesday, gives a median inflation expectation of 4.0% for the next 12 months, its highest since the spring, compared to 3.5% in august.
The ECB also uses this survey to assess household confidence in the central bank’s ability to bring inflation back to its 2% target in the medium term.
The median three-year inflation expectation reached 2.5%, unchanged from the previous survey, but above the ECB’s target.
In September, the ECB raised its inflation forecast for 2024, mainly due to rising energy prices, and now expects prices to rise by 5.6% this year. , 3.2% in 2024 and 2.1% in 2025.
(Editor Francesco Canepa, Corentin Chappron, edited by Kate Entringer)
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