According to estimates by financial market experts, the inflation rate in the euro zone will probably be years above the European Central Bank’s target. However, the inflation expectations of the experts are falling noticeably for the first time in a long time, as a survey by the Mannheim-based economic research institute ZEW shows. Frank Brückbauer, scientist in the ZEW research department Old-Age Provision and Sustainable Financial Markets, spoke of a trend reversal. “After no further increase in the inflation expectations of the financial market experts was recorded for the first time in May 2023, they are now falling noticeably for the first time in August 2023.” But inflation expectations remained high, he said. Inflation rates in the euro zone are likely to remain well above the ECB’s two percent target until at least 2025. According to the survey, the financial market experts expect average inflation rates of 5.5 percent, 3.3 percent and 2.5 percent for the years 2023, 2024 and 2025. In May, the experts were expecting higher rates of 5.8 percent and 3.7 percent Percent assumed this year and next. 125 financial professionals took part in the ZEW survey.
ZEW Survey: Inflation in the Eurozone Falling – Economy
