But the good news is that they aren't getting any lower, for now at least
Relative to historical levels, euro area long-term inflation expectations remain extremely subdued but have been largely helped by the ECB response via PEPP stimulus back in March and is also getting some reprieve from the recovery fund agreement:
The measure is sort of a gauge of market confidence in the euro area and the ECB and while it is still much lower than where policymakers would like it to be, the positive takeaway is that at least it has improved somewhat since March.
The trajectory is another reason that may work in the euro currency's favour should inflation expectations continue to improve in the coming quarters (the current outlook is mostly for inflation to be anchored at subdued levels though).
