The ECB reflected those median forecasts for one year increased from 5.1% to 5.4%.

Meanwhile, three-year inflation expectations remained unchanged at 3%.

The ECB also warned that consumer expectations for both nominal spending and income growth over the coming 12 months increased.

The Europeans expected their home prices to grow less over coming 12 months, while their forecasts for one-year mortgage interest rates continued to rise, the ECB reported.

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