ECB's SAFE survey predicts slowdown in growth in selling prices and non-labor cost

According to the European Central Bank’s (ECB) Survey on the Access to Finance of Enterprises (SAFE), more than 5,000 firms that participated have downplayed expectations for an increase in selling prices. The survey showed that selling prices growth expectations have cooled down to 3.2% Year-on-Year (YoY), down from 3.5% anticipated in the previous survey.

Other findings were:

Growth in non-labour input costs, including energy, is projected to rise by 5.2% YoY, down from
the previous expectations of 5.8%.

Inflation expectations at the one, three and five-year horizons remained largely stable.

Firms expect lower increases in selling prices, non-labour input costs and wage expectations.

Middle East war forcing firms to seek alternative suppliers, improve energy efficiency.