Rising Energy Costs Push Eurozone Inflation Expectations Higher

Consumers across the eurozone are now expecting significantly higher inflation, as rising energy prices linked to the war in the Middle East begin to affect household outlooks, according to the latest survey by the European Central Bank. The ECB is paying close attention to these expectations as it weighs whether additional interest rate increases may be needed if inflationary pressure continues to grow, particularly as a result of the US-Israeli conflict with Iran and its impact on global energy markets. The bank’s monthly survey shows that average expectations for inflation over the next 12 months jumped to 4% in March, compared to 2....