According to the Consumer Expectations Survey of the European Central Bank (ECB), consumers’ inflation expectations for the next 12 months in the Eurozone declined from 3.5% in December 2023 to 3.2%, compared to the previous month.
The ECB announced the results of the Consumer Expectations Survey for December of the previous year. According to the survey, consumers’ expectations for inflation in the Eurozone for the next 12 months decreased from 3.5% in November to 3.2% in December.
The inflation expectation for the next three years, however, increased from 2.4% to 2.5%.
As a result, consumers’ expectations for inflation in the next year reached their lowest level since February 2022.
Additionally, the average consumer inflation expectation for the next 12 months declined over the past three months.
In terms of economic growth for the next 12 months, consumers’ expectations, which were at -1.3% in November 2023, remained the same in December 2023.
The unemployment rate expectation for the next year, which was at 11.4% in November 2023, decreased to 11.2% in December 2023.
In December, Eurozone consumers predicted a 2.2% increase in housing prices over a 12-month period. Expectations for the increase in housing prices were 2.4% in November 2023.
While the ECB targets inflation at 2% in the medium term, the monthly Consumer Expectations Survey plays a significant role in the bank’s monetary policy, influencing expectations regarding inflation.
source: aa.com.tr/prepared by Melisa Beğiç