The results of a survey of around 19,000 adults from 11 euro area countries, presented by the European Central Bank (ECB), showed that median inflation expectations for the next 12 months and for three years ahead decreased compared to August, while expectations for economic growth over the next 12 months were unchanged.
Median annual inflation expectations decreased by 0.3% to 2.4% (the lowest value since September 2021). Three-year inflation expectations fell by 0.2%, reaching 2.1% (the lowest value since February 2022). ECB said that uncertainty about inflation expectations over the next 12 months remained unchanged, also at its lowest level since February 2022.
The survey also found that consumer expectations for nominal income growth were 1.3%, compared with 1.2% in August. The increase was mainly driven by the lowest two quintiles. Expectations for nominal spending growth over the next 12 months remained stable at 3.2% (lowest level since February 2022). Economic growth expectations for the next 12 months remained at -0.9%. Meanwhile, expectations for the unemployment rate 12 months ahead increased to 10.6%, from 10.4% in August. Consumers expected the price of their home to increase by 2.8% over the next 12 months, up from +2.7% in August. Expectations for mortgage interest rates 12 months ahead decreased by 0.1% to 4.7% (the lowest value since September 2022).