Eurozone companies anticipate slower increases in selling prices and non-labor costs, signaling easing inflation pressures.
Eurozone firms expect selling price growth to slow to 3.2% year-on-year, down from 3.5% in the previous ECB survey. The decline reflects cooling inflation expectations amid softer demand and cost pressures.
Non-labor input costs, including energy, are projected to rise 5.2% YoY, a drop from the prior 5.8% forecast. Inflation expectations at one-, three-, and five-year horizons remained stable, suggesting firms see no sharp rebound.
The survey highlights firms’ efforts to adapt to supply chain disruptions, including seeking alternative suppliers and improving energy efficiency, partly driven by geopolitical tensions in the Middle East.