Euro Zone Inflation Expectations Rise in August

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Euro Zone Inflation Expectations Rise in August
Photo: Michael Probst AP/TT

Inflation expectations among consumers in the euro zone rose in August, according to a survey made by the European Central Bank (ECB). The outcome speaks against further cuts in the ECB's interest rates.

Prices in the euro zone are expected to rise by 2.8 percent in a year's time according to the August measurement, up from 2.6 percent in the corresponding measurement in July.

Over a five-year period, expectations also rose to an inflation rate of 2.2 percent.

In August, inflation in the euro zone was measured at 2.0 percent, but it is expected to have risen to 2.3 percent in September according to analyst surveys.

When it comes to growth, the euro zone's consumers continue to look bleakly at the near future, according to the August measurement. Expectations are for a GDP decrease of 1.2 percent. At the same time, expectations for unemployment are rising to 10.7 percent, up from 10.6 percent.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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