Eurozone 1-Year Ahead Inflation Expectations Highest Since Early 2024

(RTTNews) - Eurozone inflation expectations for the year-ahead rose to the highest in more than a year in April, the Consumer Expectations Survey from the European Central Bank showed on Wednesday.

Consumers expect inflation to reach 3.1 percent over the next twelve months in April compared to 2.9 percent in March. The 3.1 percent was the highest since February 2024.

Expectations for three years ahead remained unchanged at 2.5 percent and that for five years ahead were unchanged for the fifth consecutive month at 2.1 percent, the survey showed.

Consumers' nominal income growth expectations for the next twelve months eased to 0.9 percent from 1.0 percent. Conversely, expected nominal spending growth over the next twelve months rose to 3.7 percent from 3.4 percent in March.

Further, economic growth expectations for the next twelve months became more negative, falling to -1.9 percent in April from -1.2 percent in March, the survey showed.

Expectations for the unemployment rate twelve months ahead increased to 10.5 percent from 10.4 percent in March.