London, 06 February 2024
Euro Area Inflation Uncertainty Remains.
The ECB Consumer Expectations Survey revealed that, after an upwardly revised 3.5% in November, the median consumer expectation for Euro Area inflation over the following 12 months dropped for a third consecutive month to 3.2% in December 2023—the lowest since February 2022.
On the other hand, the level of uncertainty around inflation forecasts stayed constant, while inflation expectations for the next three years went up somewhat from 2.4% to 2.5%. Concurrently, consumers' predictions for the unemployment rate over the next 12 months dropped from 2.4% to 11.2%, and they anticipate a 2.2% increase in housing prices, down from November's 2.4% increase.
Additionally, consumer expectations for nominal income growth stayed steady at 1.2% and consumer expectations for economic growth stayed steady at -1.3% for the upcoming year. Beginning in December 2023, five additional nations have joined Belgium, Germany, Spain, France, Italy, and the Netherlands in the ECB expectations survey: Ireland, Greece, Austria, Portugal, and Finland. Source: Trading Economics // Edited by The Decision Maker - Finance editors