FRANKFURT (Reuters) – Euro zone consumers stopped reducing their inflation expectations in June after four consecutive monthly falls, a European Central Bank survey showed on Friday.
The ECB’s Consumer Expectations Survey is one input that central bankers from the euro zone’s 20 countries use to gauge whether the public has faith in their ability to bring down inflation to their 2% goal.
The latest poll showed the median consumer expected inflation to average 2.8% over the next 12 months, stable from May after a steady fall from 3.3% in January.
Inflation three years ahead was seen at 2.3%, also unchanged from the previous month.
The ECB cut interest rates in June and is widely expected to do so again in September as it sees inflation slowly heading down to 2% by the end of next year after a sharp surge in prices in 2021-2022.
(Reporting By Francesco Canepa; Editing by Alex Richardson)
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