Francoforte, Aug. 21 (LaPresse) – Eurozone consumers’ expectations for inflation over the next twelve months fell to 2.9% in July, from 3.0% in June. This was reported by the ECB in its monthly Consumer Expectations Survey. Expectations for inflation over three years also fell, from 2.8% to 2.7%, while those over five years remained unchanged at 2.4%. Perceived inflation over the previous twelve months fell to 3.5%, from 3.6%. Expectations for economic growth over the next twelve months improved, although remaining in negative territory, rising from -1.4% to -1.2%, while expectations for the unemployment rate remained unchanged at 11.2%. Quarterly data nevertheless point to a deterioration in sentiment on the labour market, with unemployed people seeing a lower probability of finding a job in the following three months and employed people estimating a higher probability of losing their jobs. Expectations for nominal income growth over the next twelve months fell to 1.0%, from 1.1%, while expectations for spending growth remained unchanged at 3.6%. Expectations for increases in house prices also remained unchanged at 3.4%, while expectations for mortgage rates over the next twelve months fell from 5.0% to 4.9%.
ECB: consumer inflation expectations for one year fall to 2.9% in July
Francoforte, Aug. 21 (LaPresse) – Eurozone consumers’ expectations for inflation over the next twelve months fell to 2.9% in July, from 3.0% in June. This was reported by the ECB in its monthly Consumer Expectations Survey. Expectations for inflation over three years also fell, from 2.8% to 2.7%, while those over five years remained unchanged at 2.4%. Perceived inflation over the previous twelve months fell to 3.5%, from 3.6%. Expectations for economic growth over the next twelve months improved, although remaining in negative territory, rising from -1.4% to -1.2%, while expectations for the unemployment rate remained unchanged at 11.2%. Quarterly data nevertheless point to a deterioration in sentiment on the labour market, with unemployed people seeing a lower probability of finding a job in the following three months and employed people estimating a higher probability of losing their jobs. Expectations for nominal income growth over the next twelve months fell to 1.0%, from 1.1%, while expectations for spending growth remained unchanged at 3.6%. Expectations for increases in house prices also remained unchanged at 3.4%, while expectations for mortgage rates over the next twelve months fell from 5.0% to 4.9%.