Home›Bonds & Rates›Inflation›ECB survey shows euro zone consumers cut inflation out…

ECB survey shows euro zone consumers cut inflation outlook in June

Median perceived inflation over the past 12 months fell to 3.6%, while consumers lifted nominal income growth expectations to 1.1% from 1.0%.

Reported · Written up by our desk · Inflation

In June, the ECB Consumer Expectations Survey showed consumers in the euro zone marked down their inflation outlook, with the median rate of perceived inflation over the previous 12 months decreasing to 3.6% from 4.0% in May.

The ECB also found median expectations for inflation over the next 12 months declined to 3.0% from 3.5% in May, while inflation expectations three years ahead fell to 2.8% from 2.9%. Consumers’ five year ahead inflation expectations stayed unchanged at 2.4%.

Uncertainty about inflation expectations for the next 12 months fell for a second straight month, but remained higher than before the start of the war in the Middle East, according to the ECB survey. The results also showed persistent gaps by income, with lower income quintiles reporting higher inflation perceptions and expectations than higher income quintiles, and younger respondents aged 18 to 34 reporting lower inflation expectations than older groups.

Beyond inflation, the ECB survey indicated consumers expected nominal income growth to rise to 1.1% from 1.0% in May, while perceived nominal spending growth fell to 5.1% from 5.4%. Expectations for economic growth over the next 12 months improved to -1.4% from -1.7%, and consumers expected mortgage interest rates to increase to 5.0% from 4.9%.

More like this

Sources