FRANKFURT, May 11 (Reuters) - Euro zone consumers raised
their inflation expectations in March, even as the rate of price
growth fell and the European Central Bank kept raising interest
rates, an ECB survey showed on Thursday.
The median respondent in the latest Consumer Expectation
Survey saw prices growing by 5.0% in the coming 12 months, up
from 4.6% in the previous survey round in February.
It was the first increase in inflation expectations since
the autumn, an unwelcome development for an ECB that is trying
to stop the current high rate of price growth from becoming
entrenched.
The ECB slowed the pace of its interest rate increases last
week but signalled more tightening to come in what markets
expect to be the final stage of its fight against inflation.
Longer-term expectations also increased sharply, with
inflation three years ahead now seen at 2.9% after a 2.4%
reading a month earlier.
The CES is a monthly online survey of around 14,000 adults
from Belgium, Germany, Spain, France, Italy and the Netherlands.
It is one of the inputs used by ECB policymakers in their
deliberations.
(Reporting By Francesco Canepa
Editing by Balazs Koranyi)
Messaging: francesco.canepa.thomsonreuters.com@reuters.net))
