www.ecb.europa.eu
5 July 2023
- consumer inflation expectations for the next 12 months decreased further, while those for inflation three years ahead remained stable;
- expectations for nominal income growth over the next 12 months increased slightly, while expectations for nominal spending growth continued to decline;
- 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 increased slightly.
Inflation
The median rate of perceived inflation over the previous 12 months decreased to 8.0% in May 2023, from 8.9% in April. Median expectations for inflation over the next 12 months also decreased to 3.9%, from 4.1% in April, while those for inflation three years ahead remained unchanged at 2.5%. Uncertainty about inflation expectations 12 months ahead fell to its…