ECB’s monthly Consumer Expectation Survey revealed a decline in Eurozone consumers’ inflation expectations from 3.5% in November to 3.2% in December for the upcoming 12 months.
Here are some additional insights:
- The median rate of perceived inflation over the past 12 months dropped to 6.9% from 7.6%.
- Consumers anticipate nominal income growth to remain unchanged at 1.2%.
- Expectations for nominal spending growth over the next year are also unchanged at 3.6%.
Market response:
As of the latest update, the EUR/USD pair is holding steady around 1.0740. This comes amidst dovish ECB rhetoric and the downward trend in inflation expectations.
