www.ecb.europa.eu
11 May 2023
- consumer inflation expectations increased significantly;
- expectations for nominal income growth over the next 12 months were broadly stable, while expectations for nominal spending growth rose further;
- expectations for economic growth over the next 12 months became slightly more negative and the expected unemployment rate in 12 months’ time increased;
- consumers’ expectations for growth in the price of their home over the next 12 months and for mortgage interest rates 12 months ahead increased slightly.
Inflation
The median rate of perceived inflation over the previous 12 months increased to 9.9% in March 2023, from 8.7% in February. Median expectations for inflation over the next 12 months increased, moving from 4.6% in February to 5.0%. Expectations for inflation three years ahead also increased, from 2.4% to 2.9%. Inflation expectations remained well below the perceived past inflation rate, particularly at the three years horizon. Uncertainty…