Inflation & Prices

ECB Says Consumer Inflation Expectations Rose Significantly

  • Inflation 3 years ahead seen at 2.9%, further above 2% goal
  • Some officials suggest hikes may need to persist beyond summer
WATCH: “Inflation is still very sticky,” says ECB Governing Council member Joachim Nagel. “It is a very stubborn phenomenon.”Source: Bloomberg
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Consumer expectations for euro-zone inflation rose “significantly” in March — bolstering the case of European Central Bank officials who say interest-rate increases may need to persist beyond the summer.

Expectations for the next 12 months increased to 5% from 4.6% in February, the ECB said Thursday in its monthly survey. For three years ahead, they climbed to 2.9% from 2.4% — further above the 2% medium-term target.