ECB made inflation forecast for 2023
2022.12.07 04:53
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ECB made inflation forecast for 2023
Budrigannews.com – In a monthly survey released on Wednesday, the European Central Bank found that while consumer expectations for inflation in the coming year increased in October, projections for inflation three years out remained stable at a rate that was still well above the target of 2%.
The ECB has been raising rates at a record rate to temper at least longer-term expectations, as energy and food prices skyrocketed this year.
Based on a survey of approximately 14,000 people in six of the largest countries in the euro zone, the ECB stated that median inflation expectations for the next 12 months increased to 5.4% in October from 5.1% in September, while inflation expectations for the next three years remained unchanged at 3.0%.
Inflation dropped to 10% last month after reaching a record high of 10.6% in October. However, its decline in early 2023 is anticipated to be sluggish before disinflation accelerates in the second half of the year.
According to the ECB, consumers became more pessimistic about growth and employment, which contributed to the rise in inflation expectations.
While unemployment is expected to rise and income growth is anticipated to trail inflation, expectations for economic growth over the next 12 months have decreased to -2.6%, down from -2.4% in September.
