The ECB’s monthly survey released today showed that consumers’ expectations for the next 12 months fell to 3.4% from 3.9% in May, and expectations for the next three years fell to 2.3% from 2.5%.
However, the market’s gauge of price growth is testing new all-time highs.
A gauge of future inflation closed at its highest level since 2010 on Monday, pointing to an average inflation rate of 2.67% between 2028 and 2033.
Consumers were slightly less pessimistic about the economy, with the economy expected to shrink 0.6% over the next 12 months, compared with 0.7% in May.
A year from now, the unemployment rate is expected to be 11%, the same as in the May survey.
Nominal income is expected to have risen 1.2%, the same as in the May survey.
House prices are expected to rise 2.1% over the next 12 months, holding steady at a two-year low.
Expectations for mortgage rates over the next 12 months fell slightly to 5% from 5.1% in May.
