Euro zone consumers brace for recession and high inflation – ECB survey

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Euro zone consumers brace for recession and high inflation – ECB survey

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(Reuters)-04/08/2022

By comparison, the ECB expects inflation to average 6.8% in 2022 before falling to 3.5% in 2023 and 2.1% in 2024. It sees growth at 3.7% this year, 2.8% next year and 1.6% in 2024.

The ECB raised interest rate by 50 basis points last month and guided for more hikes in the months ahead to fight record-high euro zone inflation, which hit 8.9% last month.

It cited “anchoring…inflation expectations” as one of the reasons for the move.

For the survey, the ECB interviews around 14,000 adults each month from Belgium, Germany, Spain, France, Italy and the Netherlands. These countries represent 85% of the euro area’s GDP and 83.8% of its population.