ECB’s Consumer Expectations survey: Households became attentive when Iran conflict started

According to the latest European Central Bank’s (ECB) own Consumer Expectations survey (CES), consumers immediately increased their attention to price changes when the ⁠Iran conflict started, even though inflation was still around 2%, the central bank's target level, Reuters reports.

Remarks

This evidence suggests that consumers are experiencing the war in Iran with a potential 'double scar’.

These two scars may reinforce each other and are likely to shape consumer expectations and behaviour in the coming months, as ‌conflicts and heightened macroeconomic uncertainty persist.