Inflation expectations rise in the euro area
While inflation has risen this year driven by high energy and food prices, the European Central Bank (ECB) raised interest rates at a record pace to lower long-term inflation expectations.
The median inflation expectation for the next 12 months rose to 5.4 percent in October, from 5.1 percent in September, according to the survey released today by the ECB, with the participation of approximately 14,000 people from six countries with the largest economies in the Eurozone.
According to the survey, inflation expectations three years from now were stable at 3 percent.
AUTUMN IS EXPECTED TO PICK UP IN 2023
Although inflation fell to 10 percent this month after reaching a record high of 10.6 percent in October, the decline in early 2023 is expected to be slow, with disinflation picking up only in the second half of the year.
The increase in inflation expectations came at a time when consumers took a pessimistic outlook on economic growth and employment.
Growth expectations for the next 12 months fell to minus 2.6 percent from minus 2.4 percent in September, with estimates of rising unemployment and rising incomes below inflation. (AA)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
