site.btaInflation Expectations Grow in January

In January 2025, the total consumer confidence indicator dropped by 7.3 percentage points compared with October 2024, down from -12.2% to -19.5%, which is due to the decreased confidence among both urban and rural inhabitants - by 5.2 and 12.6 percentage points respectively, the National Statistical Institute said on Friday.

In January, consumers’ opinions about the development of the general economic situation in the country over the last 12 months and their forecasts over the next 12 months are more pessimistic in comparison with the previous survey, as a result of which the balance indicators decrease by 14.4 and 8.4 percentage points, respectively. Compared with October 2024, their assessments and expectations about the changes in the financial situation of their households are also more negative. The consumers continue to believe that over the last 12 months there has been an increase in consumer prices. At the same time, their inflation expectations about the next 12 months have strengthened, as a result of which the balance indicator increases by 16 percentage points. 

Regarding unemployment in the country over the next 12 months, the prevailing forecasts are that it will continue to increase. The last survey reports a slight drop of the total assessment of the present situation for making major purchases of durable goods, as the consumers’ attitude to make such expenditures over the next 12 months are more unfavourable.