The results of a survey of around 19,000 adult consumers from 11 euro area countries, presented by the European Central Bank (ECB), showed that annual consumer inflation expectations increased in January (for the first time in four months), while expectations for economic growth over the next 12 months became less negative.
Median annual inflation expectations rose to 3.3% from 3.2% in December, while three-year inflation expectations remained unchanged at 2.5%. Inflation expectations at the one-year and three-year horizons remained well below the perceived past inflation rate. 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 December. Expectations for nominal spending growth over the next 12 months increased to 3.7% from 3.6% in December.
Economic growth expectations for the next 12 months were less negative, at -1.1%, compared with -1.3% in December. Meanwhile, expectations for the unemployment rate 12 months ahead fell by 0.3% to 10.9%. Consumers expected the price of their home to increase by 2.2% over the next 12 months, as in December. Expectations for mortgage interest rates 12 months ahead declined by 0.2%, to 5.1%.