Inflation expectations in the Eurozone continued to rise for the third consecutive month, with median projections for the next 12 months reaching 2.8% in December 2024, up from 2.6% in November.
Eurozone inflation expectations climb again
However, longer-term inflation expectations remained steady at 2.4%, while uncertainty surrounding short-term inflation stayed at its lowest level since February 2022. Meanwhile, consumer expectations for nominal income growth over the next year remained unchanged at 1.1%, as did expected nominal spending growth at 3.5%. Economic growth expectations also held steady at -1.3%, reflecting persistent concerns about the region’s financial outlook.
Eurozone jobless rate expectations edge lower
In the labor market, expectations for the unemployment rate 12 months ahead dipped slightly to 10.5% from 10.6% in November, suggesting cautious optimism despite broader economic challenges.
