Link Securities | According to the monthly report published by the ECB, average inflation expectations in the Eurozone for the next 12 months rose in April for the second consecutive month to 3.1% and from 2.9% in March, standing at its highest level since February 2024. Inflation expectations for the next three years remained unchanged in April at 2.5%, while inflation expectations for the next five years stood at 2.1% for the fifth consecutive month.
On the other hand, expectations for nominal consumer income growth over the next 12 months declined in April to 0.9% from 1.0% in March and expected nominal spending growth increased to 3.7% from 3.4%. In addition, expectations for economic growth over the next 12 months turned more negative, falling to -1.9% in April from -1.2% in March. Finally, expectations for the unemployment rate over the next 12 months increased in April to 10.5% from 10.4% in March.
