European
Central Bank said on Tuesday that its latest survey of households revealed that
consumer inflation expectations for the year ahead in the Eurozone increased to 2.6 per cent in November 2024 from 2.5
per cent in October 2024. This was the highest reading in three months.
Meanwhile, three-year-ahead inflation expectations rose to 2.4 per cent in November from 2.1 per cent in the
previous month, the highest level since July 2024.
“Inflation expectations at the one-year and three-year
horizons thus remained below the perceived past inflation rate,” the ECB noted.
However, both gauges were well above the ECB’s 2% target.
The
report also showed that consumer expectations for the unemployment rate 12
months ahead increased to 10.6 per cent from 10.4 per cent in October, while economic
growth expectations for the next 12 months worsened to -1.3 per cent in November from -1.1 per cent in the previous month. Elsewhere, the euro area consumers’
nominal income growth expectations over the next 12 months remained unchanged
at 1.1 per cent in November, while their nominal spending growth expectations over
the next 12 months improved to 3.5 per cent, the highest level since April 2024.