The results of a survey of around 19,000 adults from 11 euro area countries, presented by the European Central Bank (ECB), showed that annual consumer inflation expectations declined for the third consecutive month, while expectations for economic growth over the next 12 months remained unchanged.
Median annual inflation expectations fell to 3.2% from 3.5% in November, while three-year inflation expectations rose by 0.1% to 2.5%. Inflation expectations at the one-year horizon declined to their lowest level since February 2022. ECB said that uncertainty about inflation expectations over the next 12 months remained unchanged.
The survey also found that consumers expected their nominal income over the next 12 months to increase by 1.2%, as in November. Expectations for nominal spending growth over the next 12 months also remained unchanged (+3.6%).
Economic growth expectations for the next 12 months remained unchanged at -1.3%. Meanwhile, expectations for the unemployment rate 12 months ahead fell by 0.2% to 11.2%. Consumers expected the price of their home to increase by 2.2% over the next 12 months, compared to +2.4% in November. Expectations for mortgage interest rates 12 months ahead declined by 0.2%, to 5.3%.