Record increase in inflation expected in eurozone

A new European Central Bank survey shows a sharp rise in inflation expectations across the eurozone, creating pressure on policymakers. In March 2026, consumers expect prices to rise by 4.0% over the next year, up from 2.5%, while three year expectations increased to 3.0%, both well above the bank’s 2% target. Higher energy costs, intensified since the Russian invasion of Ukraine, are the main driver.

Officials fear these increases could become self sustaining, forcing stricter monetary policy. Markets expect rates to remain steady for now, but hikes are still possible. Meanwhile, consumers are more pessimistic, forecasting a GDP decline of 2.1% and higher spending growth of 5.1%, straining household budgets.

(pb.pl)