Eurozone consumers reported higher past inflation but slightly lower three-year expectations in April, while short-term views held steady.
Eurozone consumers perceived inflation over the past 12 months at 4.0% in April, up from 3.5% in March, according to the ECB’s latest survey. Short-term inflation expectations remained unchanged at 4.0%, while three-year expectations edged down to 2.9% from 3.0%. Five-year expectations held steady at 2.4%.
The survey also revealed weaker nominal income growth expectations and higher spending growth forecasts for the next year. Economic growth expectations turned more negative, though the expected unemployment rate in 12 months declined. Home price and mortgage rate expectations remained stable.
Uncertainty around near-term inflation expectations stayed elevated, with lower-income and younger respondents reporting different perceptions compared to higher-income and older groups.