Eurozone consumers foresee higher inflation but fear economic downturn, signaling potential stagflation.

Eurozone consumers now expect higher inflation, with 12-month forecasts rising to 2.6% and three-year forecasts to 2.4%. However, they are also predicting a more negative economic growth outlook, with the yearly growth expectation falling to -1.3%. These changes suggest consumers are less confident in the ECB's ability to manage inflation, potentially pointing towards stagflation concerns.

2 months ago
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