According to Jin10 data reports, a survey by the European Central Bank shows that consumers in the Eurozone raised their inflation expectations for the coming years in March. The inflation expectation for the next 12 months is 2.9%, up from 2.6% last month; the inflation expectation for the next three years rose from 2.4% to 2.5%.
Although such increases usually raise alarms at the European Central Bank, the data was collected before the U.S. tariffs were imposed, and the tariff policy has changed the global economic outlook. A stronger euro, falling energy prices, and potentially weakening economic growth may reduce price growth.
Due to changes in the outlook, the European Central Bank lowered interest rates again in April and warned of weak economic growth. Some policymakers believe there is a renewed risk of missing the 2% inflation target.