The results of a survey of around 19,000 adults from 11 euro area countries, presented by the European Central Bank (ECB), showed that inflation expectations for the next 12 months decreased, while expectations for economic growth over the next 12 months became less negative.
Median annual inflation expectations fell to 2.9% (the lowest value since September 2021) from 3.0% in March, while three-year inflation expectations fell to 2.4% from 2.5%. Inflation expectations at the one-year and three-year horizons remained below the perceived past inflation rate. ECB said that uncertainty about inflation expectations over the next 12 months remained unchanged.
The survey also found that consumer expectations for nominal income growth remained stable at 1.3%. Expectations for nominal spending growth over the next 12 months also remained stable (3.6%).
Economic growth expectations for the next 12 months were -0.8% compared to -1.1% in March. Meanwhile, the unemployment rate 12 months ahead increased by 0.2%, to 10.9%. Consumers expected the price of their home to increase by 2.6% over the next 12 months, which was 0.2% more than in March. Expectations for mortgage interest rates 12 months ahead remained unchanged at 5.0%.