MNI BRIEF: ECB Boost As 3-Year Inflation Expectations Stable

Eurozone consumer inflation expectations for the next 12 months rose for the third straight month in December, jumping to 2.8% from 2.6% in the previous month, an ECB survey published 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 a point of reference, consumers thought inflation over the year to December was 3.5%, up from 3.4% in November. The latest published data from Eurostat showed inflation was actually 2.4% in the period.

On Thursday, the ECB cut its benchmark rates by 25 basis points, leaving the deposit rate at 2.75%, citing continued disinflation. (See MNI ECB WATCH: ECB Cuts By 25BP, Says Rates Still Restrictive)