www.ecb.europa.eu
6 June 2023
- consumer inflation expectations decreased significantly – reversing most of the increases seen in the previous month;
- expectations declined for both nominal income growth and nominal spending growth over the next 12 months;
- expectations for economic growth over the next 12 months became less negative and the expected unemployment rate in 12 months’ time decreased;
- consumers expect lower growth in the price of their home over the next 12 months and expectations for mortgage interest rates 12 months ahead declined.
Inflation
The median rate of perceived inflation over the previous 12 months decreased to 8.9% in April 2023, from 9.9% in March. Median expectations for inflation over the next 12 months decreased to 4.1% in April, from 5.0% in March, and those for inflation three years ahead decreased to 2.5%, from 2.9% in March. Uncertainty about inflation expectations 12 months ahead also decreased. Thus, the increases observed in March have largely…