ZEW Survey Among Financial Market Experts – Inflation Risk in the Eurozone Decreases During the Next Year

During the next year, a slight decrease in the Eurozone’s inflation rate can be expected. At least, this is the opinion of the majority of the 238 financial market experts surveyed by the Centre for European Economic Research (ZEW), Mannheim, in November 2011. The experts estimate an average inflation rate of 2.52 per cent for 2012. Compared with 2011, for which they forecast an inflation rate of 2.65 per cent, this would mean a slight decrease. This assessment may be explained mainly by the tarnishing economic outlook.

On the background of the current monetary easing by the ECB, the experts surveyed by ZEW in November first of all expect a further increase in inflation in the Eurozone. While in August they expected an average inflation rate of 2.35 per cent for 2011, in the current survey they revised this assessment upward. For 2012, however, a  decrease in inflation is expected. In the survey of August, the experts had expected an average inflation rate of 2.62 per cent for 2012. Three months later, they expect an inflation rate of 2.52 per cent. 

For further information please contact

Frieder Mokinski, Phone +49 621/1235-143, E-mail: mokinski@zew.de