Consumers see inflation lower for next 12 months at 3.2% in December

Inflation expectations among Eurozone consumers fell from 3.5% in November to 3.2% in December for the next 12 months, the European Central Bank’s (ECB) monthly Consumer Expectation Survey showed on Tuesday.

Additional takeaways

Median rate of perceived inflation over the previous 12 months was 6.9% (previously 7.6%).

Consumer expectations for nominal income growth seen at 1.2% (unchanged).

Expectations for nominal spending growth over the next 12 months seen at 3.6% (unchanged).

Market reaction

At the press time, EUR/USD is holding steady near 1.0740 amid dovish ECB-speak and falling inflation expectations.