Eurozone Consumers Slash Inflation Expectations - ECB Survey

• Eurozone consumers have slashed their inflation expectations, a European Central Bank survey showed on Tuesday, in comforting news for the ECB's efforts to contain prices.
• The Consumer Expectations Survey (CES) is used by policymakers to gauge whether households have faith in the ECB's ability to hit its 2% inflation goal, which may affect their wage demands and attitude towards saving and spending.
• The latest round of the poll carried out in November showed the median household expected prices to grow by 3.2% in the following 12 months, down from 4.0% a month earlier.
• Expectations for inflation three years ahead also came down to 2.2% from 2.5%. This is likely to mirror a sharp fall in inflation in November as well as a contraction in lending as a result of the ECB's steep increases in interest rates.

(Source: Reuters)