Economic growth expectations for the coming year remained stable.
Inflation expectations in the euro area continued to decline in September, hitting their lowest level in three years. This is evidenced by data from the European Central Bank's monthly survey of 19,000 consumers.
Average inflation expectations for the next 12 months fell to 2.4% from 2.7% in August, the lowest level since September 2021. Inflation expectations over the next three years fell 0.2 percentage points to 2.1%, according to the September survey. %, the lowest level since February 2022.
The economic growth forecast for the next 12 months was stable at -0.9% in September. The survey also showed that the expected unemployment rate for the next 12 months rose from 10.4% to 10.6%.
The inflation rate in the euro area in September 2024 increased by 1.8% compared to the same month in 2023. Therefore, this indicator slowed compared to August's 2.2%. Consensus forecasts from analysts cited by Trading Economics had expected consumer price inflation to fall to 1.9% in September.
As GMK Center previously reported, the ECB cut its key interest rate by 25 basis points on October 17, as expected by analysts. This is the third consecutive reduction since June of this year. The regulator said the decision to lower deposit rates was based on an updated assessment of inflation expectations, core inflation trends and the strength of monetary policy spillovers.
