ECB Survey: Inflation Expectations Rise Amid Stable Income Growth

The European Central Bank (ECB) has released its latest household survey, which reveals that inflation expectations among consumers are rising.

The median rate of perceived inflation over the past 12 months remained stable at 3.5%, but the median expectation for inflation in the next 12 months increased to 3% from 2.9%

This increase is not isolated to short-term expectations, as the median expectations for inflation over three and five years also rose.

The survey found that consumers' expectations for nominal income growth over the next 12 months remained unchanged at 1%, while expectations for economic growth were flat at -1.2% in August.