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 remained unchanged,
Median annual inflation expectations fell to 2.8% (the lowest value since September 2021) from 2.9% in April, while three-year inflation expectations fell to 2.3% from 2.4%. 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 decreased to its lowest level since February 2022.
The survey also found that consumer expectations for nominal income growth decreased to 1.2%, from 1.3% in April. Expectations for nominal spending growth over the next 12 months declined by 0.3%, to 3.3%. Economic growth expectations for the next 12 months remained unchanged at -0.8%. Meanwhile, the unemployment rate 12 months ahead decreased by 0.2%, to 10.7%. Consumers expected the price of their home to increase by 2.6% over the next 12 months, which was unchanged from April. Expectations for mortgage interest rates 12 months ahead edged down to 4.9%, from 5.0% in April.