ECB survey: Eurozone Consumer Inflation Expectations edge up to 2.5% over next 12 months

The latest monthly Consumer Expectations Survey by the European Central Bank showed on Friday that Eurozone inflation is seen slightly higher for the year ahead in October.

Key takeaways

Median inflation expectations for the next 12 months picked up to 2.5% from 2.4% previously.

Expectations for three years ahead remained unchanged at 2.1%.

Consumers became more pessimistic on growth, as expectations for the next 12 months fell to -1.1% from -0.9% seen in September.

In line with this growing pessimism, nominal income growth expectations decreased to 1.1% from 1.3%,

Market reaction

EUR/USD is off the weekly highs of 1.0597, currently trading 0.22% higher on the day at 1.0578 as of writing.