ECB’s Consumer Expectations Survey for December highlighted a noteworthy trend in consumer sentiment regarding inflation and economic growth.
In a positive development, consumers’ inflation expectations for the next 12 months have decreased for the third consecutive month, with median inflation expectation falling to 3.2%, a drop from November’s 3.5% and October’s 4.0%.
Conversely, the survey indicated a slight uptick in medium-term inflation expectations, with three-year ahead inflation expectations median rising marginally from 2.4% to 2.5%, although this figure remains below 2.6% observed in October.
On the economic growth front, the survey’s findings were relatively stable, with mean growth expectation for the next 12 months remaining unchanged at -1.3%. Furthermore, the survey revealed a slight improvement in unemployment outlook, with expected mean unemployment rate declining from 11.4% to 11.2%, compared to 11.6% in October.
