The results of a survey of around 19,000 adult consumers from 11 euro area countries, presented by the European Central Bank (ECB), showed that annual consumer inflation expectations decreased in February, while expectations for economic growth over the next 12 months and the expected unemployment rate in 12 months’ time both remained unchanged.
Median annual inflation expectations fell to 3.1% (the lowest value since February 2022) from 3.3% in January, while three-year inflation expectations remained unchanged at 2.5%. Inflation expectations at the one-year and three-year horizons remained well 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 consumers expected their nominal income over the next 12 months to increase by 1.4%, compared with +1.2% in January. Expectations for nominal spending growth over the next 12 months remained stable at 3.7%.
Economic growth expectations for the next 12 months remained unchanged at -1.1%. Meanwhile, expectations for the unemployment rate 12 months ahead also remained unchanged at 10.9%.Consumers expected the price of their home to increase by 2.4% over the next 12 months, compared with +2.2% in January. Expectations for mortgage interest rates 12 months ahead remained unchanged at 5.1%.