ECB Survey: Consumers see inflation at 5.4% over the next 12 months

The European Central Bank (ECB) conducted a survey of consumer expectations for inflation, with the key findings noted below.

Median expectations for inflation over the next 12 months increased from 5.1% to 5.4%.

Median expectations for inflation three years ahead were unchanged at 3.0%.

Consumers expected their nominal income to grow by 0.7% over the next 12 months, up from 0.6% in September.

Economic growth expectations for the next 12 months declined from -2.4% in September to -2.6%.

Consumers expected the growth in the price of their home over the next 12 months to slow to 3.0% from 3.4% in September.

Market reaction

The above survey findings fail to impress Euro bulls, as EUR/USD holds near-intraday highs of 1.0480, at the time of writing. The pair is trading 0.05% higher on the day.