The European Central Bank published the April results of its Consumer Expectations Survey, showing that consumers reported a marked rise in inflation over the previous 12 months while longer-term inflation expectations were broadly stable. Perceived inflation rose to 4.0% from 3.5% in March, expectations for inflation over the next 12 months stayed at 4.0%, expectations three years ahead eased to 2.9% from 3.0%, and five-year expectations remained unchanged at 2.4%. Outside inflation, expected nominal income growth over the next 12 months fell to 0.8% from 1.2%, while expected spending growth increased to 4.3% from 4.1%. Consumers became slightly more negative on economic growth, with expectations falling to -2.2% from -2.1%, but expected unemployment in 12 months edged down to 11.2% from 11.3%. Home price growth expectations were unchanged at 3.7% and mortgage rate expectations at 4.9%. At the same time, both reported and expected credit conditions tightened further, and the share of consumers who had applied for credit in the previous three months dropped to 13.4%, the lowest level since April 2023. The ECB said the next release, covering the May Consumer Expectations Survey results, is scheduled for 26 June 2026.
European Central Bank2026-06-01
European Central Bank reports higher perceived inflation and tighter credit access in April consumer survey
The European Central Bank published April results of its Consumer Expectations Survey, showing perceived inflation rising to 4.0% while longer-term expectations remained broadly stable, with three-year expectations at 2.9% and five-year at 2.4%. Expected nominal income growth declined and expected spending growth increased, while consumers reported slightly weaker economic growth expectations, marginally lower expected unemployment, unchanged home price and mortgage rate expectations, and further tightening in credit conditions alongside a drop in credit applications to 13.4%.