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 and for three years ahead remained unchanged, while expectations for economic growth over the next 12 months became more negative.
Median annual inflation expectations remained unchanged at 2.8%, after having fallen in May to their lowest level since September 2021. Three-year inflation expectations were also unchanged in June, at 2.3%. 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 at its lowest level since February 2022.
The survey also found that consumer expectations for nominal income growth increased to 1.4%, from 1.2% in May. The increase in income expectations was broad-based across age and income groups. Expectations for nominal spending growth over the next 12 months remained stable at 3.3%. Economic growth expectations for the next 12 months were -0.9%, compared to -0.8% in May. Meanwhile, expectations for the unemployment rate 12 months ahead decreased to 10.6%, from 10.7% in May, the lowest level since the start of the series. Consumers expected the price of their home to increase by 2.7% over the next 12 months, which was slightly higher than in May (2.6%). Expectations for mortgage interest rates 12 months ahead edged down to 4.8%, from 4.9% in May.