LONDON (Reuters) – A key market measure of long-term inflation expectations in the eurozone rose to its highest level in nearly a year, boosted by expectations of U.S. inflation.
The five-year trend, five years on, rose to just over 1.29%, the highest level since January 2020 – before the coronavirus spread damage to the economy and depressed inflation.
But a growing view that winning for Democrats in a Senate-run race in Georgia could signal more fiscal spending under President Joe Biden in the coming months has risen to anticipate U.S. inflation, pouring into Europe.
The five-year, five-year rate – closely followed by the European Central Bank – is a positive sign for the central bank, which has struggled to raise inflation towards the near target. 2%.
Reciting with Dhara Ranasinghe; edited by Thyagaraju Adinarayan