The results of a survey of around 14,000 adults, presented by the European Central Bank (ECB), showed that annual consumer inflation expectations declined significantly in November, while expectations for economic growth over the next 12 months became slightly less negative
Median annual inflation expectations fell to 3.2% from 4% in October, while three-year inflation expectations decreased by 0.3% to 2.5%. Inflation expectations, both at the one-year and three-year horizons, declined to their lowest levels since February 2022. ECB said that uncertainty about inflation expectations over the next 12 months declined slightly.
The survey also found that consumers expected their nominal income over the next 12 months to increase by 1.2%, compared with +1.1% in October. Expectations for nominal spending growth over the next 12 months decreased to 3.2% from 3.3% in October.
Economic growth expectations for the next 12 months were marginally less negative in November: -1.2% compared with -1.3% in October. Meanwhile, expectations for the unemployment rate 12 months ahead fell by 0.3% to 11.1%. Consumers expected the price of their home to increase by 2.1% over the next 12 months, compared to +2.0% in October. Expectations for mortgage interest rates 12 months ahead declined by 0.1%, to 5.3%.