Eurozone Consumers' 12-Month Inflation Expectations Lowest Since Dec 2021 - ECB

(RTTNews) - Euro area consumers' inflation expectations for the next 12 months hit their lowest since December 2021, results of a monthly survey by the European Central Bank showed Friday. Median expectations for inflation over the next 12 months eased to 3.0 percent from 3.1 percent in February, the ECB Consumer Expectations Survey for March showed.

The ECB has an inflation target of 2.0 percent.

Results are from an ECB survey of around 19,000 consumers aged 18 or over from 11 euro area countries. The perceived inflation over the previous 12 months decreased for the sixth consecutive month to 5.0 percent from 5.5 percent in February.

Euro area inflation slowed to 2.4 percent in March from 2.6 percent in February, official data showed. Core inflation that excludes prices of food and energy eased to 2.9 percent from 3.1 percent in the previous month.

Meanwhile, the expected inflation for three years ahead was unchanged at 2.5 percent for the fourth month in a row, the survey said.

Income growth expectations among consumers decreased slightly to 1.3 percent from 1.4 percent. Spending growth expectations for next 12 months decreased to 3.6 percent from 3.7 percent.

The ECB survey showed that households continued to expected negative economic growth of 1.1 percent for the next 12 months.

However, the expected unemployment rate in 12 months fell to 10.7 percent from 10.9 percent.

Consumers continued to expect the future unemployment rate to be only slightly higher than the perceived current unemployment rate of 10.4 percent, implying a broadly stable labor market, the ECB said. Consumers expected house prices to rise 2.4 percent over the next 12 months, unchanged from February, the survey said. Expectations for mortgage interest rates 12 months ahead declined slightly to 5.0 percent from 5.1 percent.