Following are the key takeaways from a survey of consumer expectations for inflation, conducted by the European Central Bank (ECB) on a monthly basis.
Median inflation expectations for the next 12 months fall to 4.6% in February vs 4.9% in January.
Consumers anticipated a 1.2% increase in nominal income over the next 12 months, down from 1.3% in January.
Expectations for nominal income growth over the next 12 months edged down slightly, while expectations for nominal spending growth edged up.
Expectations for economic growth over the next 12 months became less negative and expectations for the unemployment rate in 12 months’ time decreased;
Consumers’ expectations for growth in the price of their home over the next 12 months and for mortgage interest rates 12 months ahead increased slightly.
Market reaction
EUR/USD Is off the highs but holds the recovery gains above 1.0900 on the above findings. The pair is currently trading at 1.0915, up 0.19% on the day.