MNI BRIEF: Euro Area Consumer Inflation Expectations Edge Up
MNI (LONDON) - Consumer expectations for euro area inflation over the next 12 months edged up for the second month in a row in November to 2.6% from 2.5% in the previous month, the ECB's latest consumer expectations survey shows.
The inflation outlook over the next three years ahead also increased in November, to 2.4% – a level last recorded in July 2024 – from 2.1% in October. However, expectations at the one-year and three-year horizons both remain below the perceived past inflation
rate, the survey showed.
The current perceived inflation rate over the previous 12 months increased in November to 3.4% from 3.2% in October -- and that compares to the actual number reported by Eurostat was 2.2% and the December data will be published at 1000 GMT Tuesday. Uncertainty about inflation expectations over the next 12 months remained unchanged at its lowest level since February 2022.
In December, the ECB said inflation would edge higher into year-end 2024, but would drop sustainably to the 2% target at some point in 2025. (see MNI ECB WATCH: ECB Cuts 25BP, Drops Restrictive Language )