Inflation expectations rise across the Eurozone

INFLATION expectations in the Eurozone have shot up, according to an official survey released yesterday.

The anticipated rate of consumer price inflation for this year jumped from 1.5 per cent to 1.9 per cent, the European Central Bank (ECB) revealed.

For 2012, expectations rose from 1.6 per cent to 1.8 per cent.

“Although the forecasts are still in line with ECB’s definition of price stability, the trend is alarming,” said Dominique Barbet of BNP Paribas.

Worryingly, the rise is “not entirely due to higher raw material prices,” she added.

The news came after a Reuters poll showed inflation expectations for the single currency area rising to 2.1 per cent for 2011, up from 1.9 per cent.