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.
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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
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