Eurozone consumers remained concerned about inflation in April, even as longer-term price expectations showed signs of modest improvement. According to the ECB’s latest Consumer Expectations Survey, median inflation expectations for the next 12 months held steady at 4.0%, while expectations three years ahead eased from 3.0% to 2.9%. Expectations for inflation five years ahead were unchanged at 2.4%, suggesting households still expect inflation to settle above the ECB’s 2% target over the longer term.
The data suggest inflation expectations have not become unanchored, but they also show that consumers remain unconvinced inflation will return quickly to target.
The survey painted a more cautious picture on economic growth. Expectations for economic growth over the next 12 months deteriorated from -2.1% to -2.2%, reflecting growing pessimism about the economic outlook.
At the same time, expectations for the unemployment rate edged down from 11.3% to 11.2%, indicating consumers still see labor market conditions holding up relatively well.
| Indicator | Previous | Latest | Comments |
|---|---|---|---|
| Inflation Expectations (1 Year Ahead) | 4.0% | 4.0% | Unchanged, remains elevated |
| Inflation Expectations (3 Years Ahead) | 3.0% | 2.9% | Slight improvement |
| Inflation Expectations (5 Years Ahead) | 2.4% | 2.4% | Stable, still above ECB target |
| Inflation Uncertainty (1 Year Ahead) | Elevated | Elevated | No improvement |
| Economic Growth Expectations (Next 12 Months) | -2.1% | -2.2% | More pessimistic outlook |
| Unemployment Expectations (Next 12 Months) | 11.3% | 11.2% | Slight improvement |
