ECB Survey: Consumer inflation expectations for next 12 months unchanged at 3.4% in July

The European Central Bank’s (ECB) monthly survey of consumer expectations for inflation showed on Tuesday, inflation expectations among Eurozone consumers remained unchanged in July.

Additional takeaways

“Median consumer inflation expectations for the next 12 months were unchanged, while those for three years ahead edged up.”

“Expectations for nominal income growth over the next 12 months declined slightly, but expectations for nominal spending growth remained unchanged.”

“Expectations for economic growth over the next 12 months became slightly more negative, however the expected unemployment rate in 12 months' time was unchanged.”

“Expectations for growth in the price of homes over the next 12 months remained unchanged, while expectations for mortgage interest rates 12 months ahead increased slightly; the share of respondents reporting that they applied for credit in the previous three months increased compared with April.”

Market reaction

EUR/USD is challenging intraday lows near 1.0740, weighed further down by the survey findings amidst a fresh leg higher in the US Dollar. The pair is currently trading at 1.0749, down 0.42% on the day.