How the ‘double scar’ of past inflation woes and geopolitical shocks amid the Iran war is hitting consumers
ECB researchers said consumers are raising inflation expectations by 2.5 percentage points and cutting growth forecasts as war fears weigh on spending.
4 Articles
4 Articles
Iran war impact could ’doubly scar’ eurozone consumers: ECB
Eurozone consumers, already scarred by Russia's war on Ukraine, have changed their attitudes more quickly as a result of the upheaval caused by the US-Israeli war on Iran, European Central Bank research showed on Friday, meaning the economic hit could be deeper and faster. Russia's invasion of Ukraine in February 2022 caused an energy crisis and inflation from which Europe had largely recovered, but then US-Israeli airstrikes on 28 February on I…
ECB | Geopolitical Risk and Scarring Effects on Consumer Expectations: Insights From the Wars in Ukraine and Iran | European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources
Blog | Geopolitical shocks influence consumer expectations about inflation and growth. This blog explores how the wars in Ukraine and Iran affect the way households think about the economy and shows how the scars of past experiences amplify reactions to subsequent geopolitical conflicts. Recent movements in euro area consumers’ inflation and growth expectations show that geopolitical shocks influence households’ economic beliefs. Drawing on the …
Eurozone consumers, already marked by the Ukraine war, changed their attitudes more quickly as a result of the turbulence of the war in Iran, showed a European Central Bank survey on Friday (2, which means that the economic impact can be deeper and faster. Ukraine's invasion by Russia in February 2022 caused an energy crisis and inflation from which Europe had recovered. But on 28 February, Israeli and American air strikes launched a war against…
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