Consumers do not see an easing of inflationary pressures, instead expecting further strengthening in the long term, according to the results of the European Central Bank’s latest survey of consumer expectations.
Average inflation expectations over the next 12 months were unchanged at 5.0%, while for the next three years they rose to 3.0% from 2.8% in June, the central bank said.
At the same time, headline inflation for the past 12 months continued to rise, with the average rate standing at 7.9% from 7.2% in June.
At the same time, estimates for economic growth over the next 12 months fell from -1.3% in June to -1.9%, the lowest level since November 2020.
Consumers, however, see a small boost to their incomes, with an increase of 0.8% over the next 12 months, up from the 0.9% they expected in June.