Eurozone consumers anticipate lower inflation over one and three years, while five-year expectations hold steady at 2.4%.
Eurozone consumer expectations for inflation fell in June, with median perceptions of past 12-month inflation dropping to 3.6% from 4.0% in May. Expectations for the next 12 months declined to 3.0% from 3.5%, while three-year expectations eased to 2.8% from 2.9%. Five-year inflation expectations remained unchanged at 2.4%.
Uncertainty around near-term inflation expectations decreased for the second month but stayed above pre-Middle East war levels. Lower-income respondents continued to report higher inflation expectations than other groups. The survey also noted improved economic growth expectations and a lower anticipated unemployment rate over the next year.
Expectations for nominal income growth rose, while spending growth projections declined. Home price growth expectations softened, but mortgage interest rate expectations increased for the next 12 months.