Anna 
Eurozone consumers have revised their inflation expectations upwards, indicating a shift from 3.2% in December to 3.3% in January for the next 12 months, according to the European Central Bank’s (ECB) monthly Consumer Expectation Survey released on Friday.
Notable Insights:
The median projections for inflation over the upcoming 12 months climbed to 3.3% in January, marking a slight increase from the 3.2% recorded in December. Meanwhile, expectations for the next three years remained stable at 2.5%.
The survey highlighted that anticipations for nominal income growth held firm at 1.2%. However, there is a persistent trend among consumers to underestimate wage growth. The ECB foresees compensation per employee to experience a 4.6% increase throughout the current year.
Market Dynamics:
As of the latest update, the EUR/USD pair maintained stability, hovering around 1.0821, despite the uptick in inflation expectations.
