FRANKFURT, Sept 27 Reuters Euro zone consumers have trimmed their inflation expectations for the next 12 months to the lowest level in three years, a European Central Bank poll showed on Friday, in a further sign the ECB is close to winning its battle to rein in prices.

The Consumer Expectations Survey is a gauge of whether households have faith in the ECB39;s ability to bring inflation down to its 2 target, which in turns may influence their behaviour when spending, saving or asking for pay hikes.

In the August edition of the survey, the median respondent saw prices growing by 2.7 in the following 12 months, the slowest pace since September 2021 and down from 2.8 in July.

Consumers also cut their inflation expectations for three years ahead from 2.4 to 2.3, the lowest level since June.

The ECB reduced borrowing costs earlier this month, adding to a first cut in June, on the back of weaker growth forecasts and expectations for a continued, albeit bumpy, fall in inflation over the next year.

And policy doves at the euro zone central bank are preparing to fight for a further reduction in October after a string of weakerthanexpected economic data, a move likely to meet resistance from their more hawkish peers, sources told Reuters.

Reporting By Francesco Canepa Editing by Christina Fincher

Source Reuters