MNI BRIEF: Eurozone Consumer Price Expectations Dip-ECB Survey

Eurozone consumer inflation expectations for the next 12 months fell in April, the latest ECB survey showed, declining to 4.1% from 5.0% in March.

Inflation expectations three years ahead decreased to 2.5%, from 2.9%. Uncertainty about inflation expectations 12 months ahead also decreased, the survey showed.

According to the Bank's Consumer Expectations Survey, many of the increases observed in the March survey have reversed out. Inflation perceptions and expectations continued to be closely aligned across income classes, with younger respondents (aged 18-34) reporting lower inflation perceptions and expectations and sharper declines than older respondents (aged 55-70).

Consumers now expect nominal income over the next 12 months to rise more slowly -- rising by1.1%, compared with1.3% in March, with spending expectations seen stable over the same period.

Inflation expectations remain a key metric for ECB policymakers, but, this latest survey suggests no great de-anchoring yet in medium-term expectations amongst eurozone consumers. (See MNI SOURCES: Most At ECB See 4% Rate As Only Outside Chance)