European Consumer Inflation Angst Isn’t Yet Receding
It would appear that the decline in European natural gas prices has contributed to an increase in Eurozone GDP estimates for the year. Once prices crossed below $50, GDP estimates began to rise, and now the consensus expects .6% GDP growth from the Eurozone this year.
But, the inflation angst is not over in Europe. Just today, the European Central Bank delivered the ECB Consumer Inflation Expectations Survey for March 2023. Our AI model summarized the results.
-Consumer inflation expectations increased significantly in March 2023, with the median rate of perceived inflation over the previous 12 months increasing to 9.9%.
-Expectations for economic growth over the next 12 months became slightly more negative, while expectations for nominal spending growth rose further.