On May 29th, according to a blog post by the European Central Bank, the Iran War may drive up mid-term inflation expectations among consumers in the Eurozone, providing further evidence for interest rate hikes. The article released by the European Central Bank on Friday stated that after the price surge triggered by Russia's military action against Ukraine in 2022 and the "double trauma" left by earlier geopolitical tensions, the possibility of faster price increases in household expectations in the future has increased. Policy makers are particularly concerned about such inflation expectations, as they hope to prevent the energy cost increase caused by war from being transmitted to a wider range of inflationary sectors through wage and corporate pricing behavior. Although short-term inflation expectations have significantly increased, the changes in medium - and long-term inflation expectations are relatively small. The market generally expects the European Central Bank to raise interest rates by 25 basis points in two weeks. At present, the inflation rate in the eurozone has reached 3% and is likely to accelerate further. The article states, "Looking ahead, consumers often extend short-term inflation expectations to the medium term, and the full transmission effect of retail prices may not yet be fully manifested. Therefore, there is indeed a risk of further upward revision of mid-term inflation expectations in the future