Euro zone inflation expectations tumble to record low

LONDON  - A key market gauge of long-term euro zone inflation expectations fell to a record low on Friday as concerns about the spread of coronavirus intensified.

The five-year, five-year forward fell to 1.1182%, its lowest level ever. 

It measures expected euro zone inflation over a five-year period.

Countries on three continents reported their first cases of the coronavirus on Friday and the world prepared for a pandemic, triggering worries around an already weak global growth outlook.

Inflation expectations have breached a previous record low in October at around 1.12%, according to Refinitiv data.

 

(Reporting by Yoruk Bahceli Editing by Tommy Reggiori Wilkes) ((Yoruk.Bahceli@thomsonreuters.com; +44 20 7542 7571; Reuters Messaging: yoruk.bahceli@thomsonreuters.com))