ECB monthly survey published Friday showed euro-area households’ inflation
expectations rose in August: one-year CPI expectations 3.0% (July 2.9%),
three-year (policy-relevant) up to 2.9% from 2.7%, and five-year expectations
also increased. Investors have priced further ECB tightening after the central
The bank’s second deposit-rate hike this month, reinforcing prior expectations. ECB
officials cited a renewed oil and gas price spike tied to the Iran war, which
began in February and remains unresolved, as a driver of the move.
