{"id":29378,"date":"2023-05-12T06:03:53","date_gmt":"2023-05-12T13:03:53","guid":{"rendered":"https:\/\/coinnetworknews.com\/inflation-expectations-of-eurozone-consumers-increased-significantly-ecb-says-finance-bitcoin-news\/"},"modified":"2023-05-12T06:03:53","modified_gmt":"2023-05-12T13:03:53","slug":"inflation-expectations-of-eurozone-consumers-increased-significantly-ecb-says-finance-bitcoin-news","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/inflation-expectations-of-eurozone-consumers-increased-significantly-ecb-says-finance-bitcoin-news\/","title":{"rendered":"Inflation Expectations of Eurozone Consumers \u2018Increased Significantly,\u2019 ECB Says \u2013 Finance Bitcoin News"},"content":{"rendered":"
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\n\"Inflation\n<\/div>\n

Consumers in the euro area have sharply raised their expectations about inflation in the coming months, the European Central Bank revealed. Survey data showing this comes after the monetary authority slowed the pace of its rate hikes last week while indicating that it\u2019s still early for a pause.<\/strong><\/p>\n

ECB Registers Heightened Consumer Expectations About Inflation<\/h2>\n

Europeans believe inflation will be around 5% over the next 12 months with their median expectations rising \u201csignificantly\u201d in March from 4.6% in February, the European Central Bank (ECB<\/a>) announced on Thursday, quoting its latest Consumer Expectations Survey (CES).<\/p>\n

The poll has been conducted before the ECB\u2019s decision<\/a> to raise interest rates by 25 basis points last week. Despite slowing the pace of rate hikes, the regulator argued that while inflation has declined, underlying price pressures remain strong, signaling further raises are likely.<\/p>\n

\u201cUncertainty about inflation expectations 12 months ahead reached its highest level since the start of the survey in April 2020,\u201d the central bank noted in a press release. Expectations for inflation in the next three years also increased, to 2.9% from 2.4%.<\/p>\n

At the same time, consumers expected their nominal income to increase by 1.3% over the next 12 months, compared to 1.2% in the previous survey. Expectations for nominal spending growth over the next year increased to 4.1%, from 3.9% in February.<\/p>\n

European expectations for economic growth over the next 12 months became slightly more negative, the ECB remarked, declining to -1.0%, from -0.9%. The expected unemployment rate for the same time period rose to 11.7% from February\u2019s 11.5%.<\/p>\n

The CES is a monthly online survey of 14,000 consumers, aged 18 or over, from six euro area countries: Belgium, Germany, Spain, France, Italy, and the Netherlands. The ECB uses its results for policy analysis. The latest data supports the views of some members<\/a> of its Governing Council who have maintained that further rate hikes are warranted by persisting inflation in the eurozone.<\/p>\n

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Central Bank<\/a>, Consumers<\/a>, ECB<\/a>, Euro<\/a>, euro area<\/a>, Europe<\/a>, European Central Bank<\/a>, Eurozone<\/a>, Expectations<\/a>, growth<\/a>, hikes<\/a>, income<\/a>, inflation<\/a>, interest rates<\/a>, Prices<\/a>, rate hikes<\/a>, rates<\/a>, Survey<\/a><\/div>\n<\/div>\n

Do you think consumer expectations about inflation in the eurozone will decrease in the next surveys? Tell us in the comments section below. <\/strong><\/em><\/p>\n

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\nLubomir Tassev <\/h6>\n

\nLubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens\u2019s quote: \u201cBeing a writer is what I am, rather than what I do.\u201d Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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