BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Eurozone consumers' inflation expectations for one year and three years ahead increased in March to their highest levels in a year, monthly survey data from the European Central Bank showed on Tuesday.
Median expectations for inflation over the next 12 months increased by 0.3 percentage points to 2.9 percent, which is the highest level since April 2024, the ECB Consumer Expectations Survey revealed. Expectations for inflation three years ahead edged up by 0.1 percentage points to 2.5 percent, which is the highest level since March 2024.
The ECB survey showed that longer term inflation expectations were unchanged. Expectations for inflation five years ahead, which was reported for the first time this month, were unchanged for the fourth consecutive month at 2.1 percent, the ECB said.
Consumers' expectations for income growth in the next 12 months were unchanged while their expectations for spending growth over the same period decreased.
The survey also showed that consumers' economic growth expectations for the next 12 months were stable at -1.2 percent in March, while the expected unemployment rate for the next 12 months decreased to 10.4 percent from 10.5 percent in February.
Consumers continued to expect the future unemployment rate to be only slightly higher than the perceived current unemployment rate of 10 percent, implying a broadly stable labor market, the ECB said.
House price growth expectations for the next 12 months increased, while those for mortgage rates were unchanged.
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