FRANKFURT (Reuters) -Euro zone consumers kept their inflation expectations mostly stable at or above the European Central Bank’s 2% target in July, an ECB poll showed on Friday.
The ECB left its key rate at 2% last month and it will probably do so again on September 11 before discussions about further cuts likely resume in the autumn, especially if the economy weakens under U.S. tariffs.
The central bank’s monthly Consumer Expectations Survey showed the median respondent expected inflation to average 2.6% over the next 12 months, unchanged from June and far higher than the ECB’s own projections.
Expectations for inflation three years ahead were nudged up to 2.5% from 2.4% in June while the five-year-ahead figure was unchanged at 2.1% for the eighth consecutive month.
The ECB targets inflation at 2% over an undefined medium term, generally believed to be around three years.
(Reporting By Francesco Canepa; Editing by Sharon Singleton)
Comments