Eurozone consumer inflation expectations surge

Listen to this article


Households in the eurozone are braced for an upsurge in inflation over the coming months, raising concerns of a squeeze to the consumer spending that has driven the continent’s recovery.

The European Commission’s monthly survey of economic sentiment revealed a four-year high for household expectations of climbing inflation after a prolonged period of weak price growth since 2012.

Annual eurozone inflation exceeded the European Central Bank’s 2 per cent target for the first time in February at 2.1 per cent – driven by a jump in energy prices as global oil prices have rebounded from decade-lows.

Still, economists and the European Central Bank expect inflation to moderate in the months and end the year below target.

Early data from Germany’s regions supports expectations of a pull back, coming in lower than forecast for Europe’s largest economy.

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from and redistribute by email or post to the web.