Euro zone households increased their inflation expectations in November, a European Central Bank poll showed on Tuesday, suggesting years of high inflation were still weighing on households' psychology.

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.