ECB says eurozone consumers’ inflation expectations rose for second consecutive month in April

The European Central Bank (ECB) reports that EU consumers’ inflation expectations rose for the second straight month in April. 

According to a monthly poll held by the regulator, prices are projected to rise 3.1% over the next 12 months. The reading increased compared to 2.9% in March and became the highest since February 2024. Inflation expectations for 3 and 5 years ahead remained at 2.5% and 2.1%, respectively. 

Meanwhile, ECB officials are confident that price growth will return to the central bank's 2% target in the coming months. Early data on inflation in May showed that France’s rate stood at 0.6%. The region’s other major economies are also expected to report below-target numbers.

With inflation slowing and US President Donald Trump threatening to impose tariffs on European goods, investors are forecasting at least two more quarter-point cuts in the ECB’s deposit rate. 

At the same time, according to the central bank’s survey, consumers in the eurozone project the region's GDP to contract by 1.9% over the next 12 months.