Inflation
In March, the median rate of perceived inflation over the previous 12 months increased to 3.5%, from 3.0% in February. Median expectations for inflation over the next 12 months and expectations for inflation three years ahead, which both stood at 2.5% in February, increased in March to 4.0% and 3.0% respectively. Inflation expectations for five years ahead also increased in March, to 2.4%, from 2.3% in February. Uncertainty about inflation expectations over the next 12 months increased in March. Respondents in lower-income quintiles continued to report on average slightly higher inflation perceptions and short-horizon expectations than those in higher-income quintiles, a trend observed since 2023. However, the broad evolution of inflation perceptions and expectations remained closely aligned across income groups, with all income groups reporting increased inflation perceptions and one year ahead expectations in March. Younger respondents (aged 18-34) continued to report lower inflation perceptions and expectations than older respondents (aged 35-54 and 55-70).
Inflation results
Income and consumption
Consumers’ nominal income growth expectations over the next 12 months remained unchanged in March compared with February, at 1.2%. Meanwhile, perceived nominal spending growth over the previous 12 months increased to 5.1%, from 4.6% in February. Expected nominal spending growth over the next 12 months increased to 4.1%, from 3.5% in February, the highest level since May 2023, with respondents in the lowest three income quintiles expecting slightly higher spending growth expectations than those in the highest two quintiles.
Income and consumption results
