Economy

Consumer expectations for eurozone inflation recede ‘significantly’ - European Central Bank

The pullback comes just over a week before policymakers are due to set borrowing costs, with a half-point hike in the deposit rate to 3 per cent all but guaranteed

With next week’s rate increase almost certain, ECB officials have started to stake out positions on what should come after. Picture: iStock

Consumer expectations for eurozone inflation receded “significantly,” according to the European Central Bank, bolstering calls for the pace of interest-rate increases to be slowed.

Expectations for three years ahead plunged to 2.5 per cent in January from 3 per cent in December, the ECB said on Tuesday in its monthly survey. There was a decline over the next 12 months too — to 4.9 per cent from 5 per cent.

The pullback comes just over ...