Consumer expectations for euro-zone inflation fell to the lowest in more than 1 1/2 years in November — supporting markets’ view that interest-rate cuts by the European Central Bank could soon be in the offing.
Expectations for the next year “declined noticeably” to 3.2% from 4%, according to the ECB’s monthly survey, published Tuesday. For three years ahead, they eased to 2.2% from 2.5%.
Despite an uptick in December, inflation is in retreat across Europe, with its rapid slowdown prompting investors to speculate on rate cuts as soon as the spring. Consumer prices rose by 2.9% from a year ago last month, still in sight of the 2% goal.
Alexander Weber | Yahoo Finance