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ECB Survey Shows Eurozone Consumer Inflation Expectations Rose Significantly

Eurozone consumers expect inflation in a year to be higher than expected a month ago, and their growth and inflation expectations worsened, results of a survey by the European Central Bank showed Thursday.

Median rate of expected inflation in the next 12 months climbed to 5.0 percent from 4.6 percent in February, the March edition of the ECB Consumer Expectations Survey revealed.

One-year ahead inflation expectation was 4.9 percent in January.

Expectations for inflation three years ahead also increased, rising to 2.9 percent from 2.4 percent.

"Uncertainty about inflation expectations 12 months ahead reached its highest level since the start of the survey in April 2020," the ECB said.

Consumers expected their nominal income growth in one year at 1.3 percent versus 1.2 percent in February.

Spending during the 12-month period is now expected to grow by 4.1 percent, which is stronger than the 3.9 percent seen in February.

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by Jyotsna V

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