Euro Zone Consumers’ Inflation Expectations Steady

BERLIN (Reuters) – Euro zone consumers’ inflation expectations for the next 12 months remained steady for the third consecutive month in July, according to a European Central Bank (ECB) survey released on Friday.

The ECB’s Consumer Expectations Survey serves as one of the indicators for central bankers in the euro zone’s 20 countries, helping them assess public confidence in their ability to reduce inflation to the targeted 2% rate.

The latest survey revealed that the median consumer anticipates inflation will average 2.8% over the next year, unchanged from May and June, following a gradual decline from 3.3% in January.

For inflation three years ahead, the figure was projected at 2.4%, slightly exceeding the previous month’s expectation of 2.3%.

Consumer expectations for income and spending growth showed a downturn, and there was a slight increase in pessimism regarding overall economic growth, with a forecasted GDP contraction of 1.0%.