FRANKFURT (Reuters) – Euro zone inflation expectations for the year ahead edged up slightly in October and stayed steady for three years out, the European Central Bank’s monthly Consumer Expectations Survey showed on Friday.
Median inflation expectations for the next 12 months picked up to 2.5% from 2.4% previously while expectations for three years ahead remained unchanged in at 2.1%, the ECB, which targets price growth at 2%, said after surveying around 19,000 adults in 11 euro zone countries.
Consumer expectations have been dropping steadily for years in line with the slowdown in overall price growth and indicate that consumers largely believe the ECB’s narrative that victory over runaway inflation is within sight.
Consumers, however, became more pessimistic on growth, as expectations for the next 12 months fell to -1.1% from -0.9% seen in September, the ECB added.
In line with this growing pessimism, nominal income growth expectations decreased to 1.1% from 1.3%, the survey showed.
(Reporting by Balazs Koranyi; Editing by Peter Graff)
Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.