FX.co ★ Euro Area Inflation Expectations Rise for 2nd Month

Inflation expectations in the Eurozone have witnessed a consecutive rise, reaching a median of 3.1% in April 2025, marking the highest level since February 2024, an increase from 2.9% in March. The uncertainty surrounding inflation expectations for the coming year has also grown, matching the levels seen in June 2024. In contrast, the inflation outlook for three years into the future has remained steady at 2.5%. Similarly, forecasts for inflation five years ahead have been consistent at 2.1% for five months in a row. On a different note, expectations for consumer nominal income growth in the upcoming year have slightly dipped to 0.9% from 1.0% in March, while anticipated nominal spending growth has risen to 3.7% from 3.4%. Furthermore, economic growth projections over the next year have turned more pessimistic, declining to -1.9% in April compared to -1.2% in March. Additionally, the unemployment rate forecast for the coming year has slightly increased to 10.5% from 10.4%.