ECB's January 2025 Consumer Expectations Survey Highlights

The European Central Bank (ECB) has recently disclosed its findings from the January 2025 Consumer Expectations Survey. Notably, the inflation expectations for the upcoming 12 months have decreased to 2.6%, a slight decline from the 2.8% noted in the December 2024 survey.

Stable Three-Year Ahead Inflation Expectations

In contrast, the three-year ahead inflation expectations have remained steady at 2.4%. The ECB highlighted that these expectations, both for the one-year and three-year horizons, continue to linger below the perceived past inflation rate. Additionally, the uncertainty surrounding inflation expectations over the next 12 months has remained unchanged for the sixth consecutive month, marking its lowest level since February 2022.

Improvements in Economic Growth and Unemployment Rate Expectations

On a brighter note, consumer expectations regarding economic growth for the next 12 months have shown improvement, shifting from negative 1.3% in December 2024 to negative 1.1% in January. Similarly, expectations for the unemployment rate one year ahead have slightly decreased from 10.5% in December 2024 to 10.4% in January.