The results of a survey of around 19,000 adults from 11 euro area countries, presented by the European Central Bank (ECB), showed that annual consumer inflation expectations declined slightly in March, while expectations for economic growth over the next 12 months remained unchanged.
Median annual inflation expectations fell to 3.0% from 3.1% in February, while three-year inflation expectations remained unchanged at 2.5% for the fourth consecutive month. Inflation expectations at the one-year horizon declined to their lowest level since December 2021. ECB said that uncertainty about inflation expectations over the next 12 months edged down and is now at its lowest level since February 2022.
The survey also found that consumers expected their nominal income over the next 12 months to increase by 1.3%, compared with +1.4% in February. Expectations for nominal spending growth over the next 12 months decreased to 3.6% from 3.7%.
Economic growth expectations for the next 12 months remained unchanged at -1.1%. Meanwhile, expectations for the unemployment rate 12 months ahead decreased to 10.7% from 10.9% in February. Consumers expected the price of their home to increase by 2.4% over the next 12 months, as in February. Expectations for mortgage interest rates 12 months ahead declined by 0.1%, to 5.0%.