CBT survey shows inflation expectations stuck near 23% – Commerzbank

💡 DMK Insight

Inflation expectations are slightly down, but here’s why that matters: a 23.2% forecast for end-2026 indicates persistent concerns about price stability. For traders, this could signal a cautious approach from central banks, potentially affecting interest rates and currency valuations. If inflation remains elevated, we might see volatility in forex pairs, especially those tied to USD and EUR. Keep an eye on how this forecast influences central bank communications and market sentiment in the coming months. Also, consider that a slight decrease in inflation expectations might not be enough to shift the Fed’s or ECB’s stance significantly. If inflation data continues to show resilience, we could see a reversal in sentiment, leading to a stronger dollar or euro against other currencies. Watch for any shifts in economic indicators or central bank meetings that could provide further clarity on this front.