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Market Analysis

Eurozone Consumers Reduce Inflation Expectations Once More, ECB Survey Reveals
Amos Simanungkalit · 992 Views

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In March, consumers in the Eurozone adjusted their expectations for inflation downwards for the next 12 months, although they still anticipate price growth above the European Central Bank's 2% target in the longer term, according to the ECB's latest Consumer Expectations Survey.


Inflation has decreased notably over the past year, prompting the ECB to consider interest rate cuts in June. However, uncertainties persist due to rising energy costs, persistent services inflation, and ongoing geopolitical tensions that could disrupt trade.


The survey revealed that Eurozone consumers now anticipate inflation of 3.0% over the next year, slightly lower than the 3.1% forecasted the previous month, marking the lowest reading since December 2021.


Meanwhile, expectations for inflation three years ahead remained unchanged for the fourth consecutive month at 2.5%, as reported by the ECB's monthly survey of approximately 19,000 consumers.


Moderate declines were observed in expectations for income and spending growth, despite a slight improvement in unemployment forecasts compared to the previous month.


Nevertheless, consumers still anticipate negative economic growth over the next year, with GDP projected to contract by 1.1%.

 

 


Paraphrasing text from "Investing" all rights reserved by the original author.

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