Euro Households Expect More

FrankfurtEuro-area households expect 3.1% inflation, up from 3%.

The reading supports bets that the European Central Bank keeps raising borrowing costs.

The Iran war holds energy above $100 a barrel, and the bank raised rates in June and September to counter it.

Berenberg’s Holger Schmieding says the bank could hold back on hikes if a crisis in France hurts growth.

Economists expect it to hold at 2.5% on 29 October and hike a quarter-point in December.

Sources: Bloomberg Business, Reuters