ECB: Eurozone inflation expectations rise

A European Central Bank survey showed on Tuesday that eurozone consumers raised their inflation expectations for the coming years in March.

Based on a survey of 19,000 consumers in 11 eurozone countries, the bank said inflation over the next 12 months is expected to reach 2.9%, up from 2.6% in the previous month’s survey.

The bank’s data also showed that inflation expectations for the next three years rose to 2.5% from 2.4%.

While such an increase would normally be of concern to the ECB, these figures precede the US tariffs that have radically altered the global economic outlook.

The euro has strengthened, energy prices have fallen, and economic growth is likely to weaken—factors that will likely reduce price growth.