MNI BRIEF: Consumer Inflation Outlook Slows - ECB Survey

Eurozone consumer inflation expectations for the next 12 months fell to 2.6%in January from 2.8% in the previous month, breaking a run of three months of rising numbers an ECB survey published on Friday showed.

According to the Consumer Expectations Survey, median expectations for inflation three years ahead were unchanged at 2.4% in December. This will come as a relief to the ECB’s Governing Council as they look for inflation to remain anchored close to their 2% target.

Consumers thought inflation over the year to January was 3.4%, down from 3.5% in November. Eurostat data showed inflation was actually 2.5% in the period.

The ECB's Governing Council meets next week and is expected to cut its benchmark rates by 25 basis points, taking the deposit rate to 2.50%. (See MNI SOURCES: ECB To Revise 2025 Inflation Slightly Higher )