Eurozone Consumer Inflation Expectation Surges to 4% in March, Likely to Worry Central Bank

FRANKFURT, April 28 (CNA) – Following the outbreak of war between the United States and Israel against Iran, which led to a sharp rise in international energy costs, the median consumer expectation for inflation in the Eurozone over the next 12 months surged from 2.5% in February to 4% in March, according to a survey released by the European Central Bank (ECB).

Agence France-Presse reported that the European Central Bank is closely monitoring consumers' views on the trend of inflation as it evaluates whether it is necessary to raise interest rates if the Middle East war causes consumer prices to accelerate.

The latest monthly survey, released today, was conducted from March 5 to 30, during the initial weeks of the Middle East war. Rising energy costs have already caused Eurozone inflation to climb to 2.6% in March.

Eurozone consumers' inflation expectations for the next three years also rose from 2.5% in February to 3% in March.

Today's data is likely to worry the European Central Bank, as it suggests that consumers believe price increases will spread more broadly across the economy.

The European Central Bank will hold a monetary policy meeting on the 30th. Although it is expected to keep interest rates unchanged again, attention will be closely paid to President Christine Lagarde's press conference held after the meeting, to look for any clues she may release regarding the interest rate outlook. (Compiler: Chang Cheng-chien) 1150428