Euro zone consumers see inflation above ECB’s target for years

Euro zone households expect inflation to remain slightly above the European Central Bank’s 2% target for the next three years, according to the ECB’s latest Consumer Expectation Survey.
The median respondent in the survey anticipated inflation of 2.5% three years from now, up from 2.4% in the previous survey. Additionally, consumers expected a modest increase in inflation over the next 12 months, from 3.4% in July to 3.5%. These expectations could pose a challenge for the ECB’s credibility as it aims to maintain inflation at or below 2%.