According to the European Central Bank (ECB), median inflation expectations three years ahead also fell by 0.1 percentage point (pp) in August to 2.3%, returning to the June level.
Younger respondents (ages 18-34) continued to report lower inflation awareness and expectations than older respondents (ages 35-54 and 55-70).
Eurozone consumers' median inflation perception for the past 12 months fell to 3.9% in August from 4.1% in July, and for the next 12 months fell to 2.9% from 2.8% in July. ．It decreased to 7%. The forecast for nominal income growth over the next 12 months was 1.2% in August, up from 1.1% in June. The GDP growth forecast for the next 12 months was not that negative.
The outlook for nominal income growth over the next 12 months rose from 1.1% in June to 1.2% in August, but the outlook for spending growth over the next 12 months remained unchanged at 3.2%.
Perceptions of nominal spending growth over the past 12 months fell further to 5.2% from 5.4% in July and 5.8% in June. The latest data points continue a sustained decline that began in March 2023.
The economic growth outlook for the next 12 months is expected to be -0.9%, down from -1% in July, while the expected unemployment rate for the next 12 months is 10.4% in August, down from 10.6% in the previous month. . July was the lowest level since the series began.
According to the ECB's release, consumers continue to expect future unemployment rates to be only slightly higher than the current unemployment rate (10%), suggesting the labor market is broadly stable. .
Fibre2Fashion News Desk (DS)
