European consumer inflation expectations are on the rise, according to the latest survey data from the European Central Bank (ECB).
The central bank’s latest consumer survey for March — a monthly online survey of 19,000 consumers across 11 countries — found that median inflation expectations for both the next 12 months, and the next three years, has risen since the previous survey.
“Median expectations for inflation over the next 12 months increased by 0.3 percentage points to 2.9%, the highest level since April 2024, while expectations for three years ahead edged up by 0.1 percentage points to 2.5%,” the ECB reported.
Looking further out, the survey found that consumer expectations for inflation over the next five years were unchanged at 2.1%.
Expectations for economic growth over the next 12 month were also unchanged, albeit negative, with consumers expecting a 1.2% contraction in the coming year — and, an uptick in unemployment to 10.4% in the next 12 months.
Consumers expect nominal income growth of 1% over the next 12 months, it also reported — and, consumer spending growth expectations slipped a bit to 3.4% in March, down from 3.5% in February.
“This decrease was observed across most income groups,” the ECB noted.