Inflation Expectations on the Rise

According to the latest findings from the European Central Bank's December 2024 Consumer Expectations Survey, inflation expectations for the upcoming year have climbed to 2.8%, marking an increase from the previous month's 2.6%.

Stability in Long-Term Inflation and Economic Growth

In contrast, the three-year ahead inflation expectations have remained steady at 2.4%. The ECB also highlighted that uncertainty surrounding inflation expectations for the next 12 months has stayed at its lowest since February 2022, unchanged for the fifth consecutive month.

Economic Growth and Unemployment Outlook

On the economic front, consumer expectations for growth over the next 12 months have stabilized at a negative 1.3%. Meanwhile, the outlook for the unemployment rate one year ahead has slightly improved, decreasing from 10.6% in November to 10.5% in December.