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 remained unchanged. Meanwhile, expectations for economic growth over the next 12 months became more negative.
Median annual inflation expectations were 2.6%, while three-year inflation expectations remained at 2.4%. Inflation expectations at the one-year and three-year horizons thus remained below the perceived past inflation rate. ECB said that uncertainty about inflation expectations over the next 12 months decreased slightly in February to its lowest level since January 2022.
The survey also found that annual consumer expectations for nominal income growth increased to 1.0% from 0.9% in January. Expectations for nominal spending growth over the next 12 months decreased to 3.5%, the same value as in December, from 3.6% in January.
Economic growth expectations for the next 12 months were more negative, standing at -1.2%, compared with -1.1% in January, but still above the December value of -1.3%. Expectations for the unemployment rate 12 months ahead increased to 10.5%, the same as in December, from 10.4% in January.
Meanwhile, consumers expected the price of their home to increase by 3.0% over the next 12 months, which was unchanged from January. Expectations for mortgage interest rates 12 months ahead declined slightly to 4.4% from 4.5%.