A market-based gauge of long-term euro zone inflation expectations surged to seven-year highs on Wednesday, as high energy prices continue to fan expectations of higher future price growth for consumers and businesses.
The five-year, five-year forward inflation swap rose to 1.8694%, the highest since November 2014, moving nearer to the ECB’s 2% inflation target. The gauge has risen sharply over the last month and had been at 1.26% at the start of the year.
