Frederik Ducrozet: Consumer inflation expectations declined before Middle East war in February

Frederik Ducrozet: Consumer inflation expectations declined before Middle East war in February
Euro inflation expectations drop in February

Consumer inflation expectations in the euro area decreased in February, according to Frederik Ducrozet. However, he underscores that this outcome is based on data collected mostly before the start of the war in the Middle East on 28 February, with 97% of responses recorded prior to the conflict.

Ducrozet adds that the next Consumer Expectations Survey, set for release on 28 April, will be particularly important as it comes two days before the European Central Bank meeting.

Ducrozet recently reported that ECB staff raised their 2026 inflation estimate to 2.6 percent and lowered the GDP growth outlook in new projections earlier this month. He also noted that the Reserve Bank of Australia increased its policy rate to 4.10 percent, the highest among developed market central banks in that period according to his previous coverage. These updates come as central banks monitor inflation trends and policy impacts.

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