Euro zone households increased their inflation expectations in November, a European Central Bank poll showed on Tuesday. The median respondent in the ECB's Consumer Expectations Survey expected prices to grow by 2.

Inflation in the Eurozone shot up to 2.4% in December, the third consecutive monthly rise, according to data from Eurostat. This is a steady climb from November’s revised 2.2% and September’s low of 1.

Prices were seen rising 2.6% over the next 12 months, up from 2.5% in October, according to its monthly survey of households released in Frankfurt on Tuesday. The gauge for three years ahead also climbed, reaching 2.4% — notably higher than the ECB’s 2% goal.

Despite the rise in inflation, markets continue to anticipate aggressive ECB rate cuts in 2025, with a 25-basis-point reduction expected this month.