Eurozone consumers' inflation expectations remained stable in July, according to the latest consumer expectations survey released by the European Central Bank on Friday.
The inflation expectations for the upcoming year held steady at 2.8%, mirroring their level after hitting a low in May, the lowest since September 2021. Likewise, the inflation expectations for the next three years were unchanged at 2.3%.
However, economic outlooks became more pessimistic. The median forecast for economic growth over the next 12 months declined to -0.9%, down from -0.8% in May.
Conversely, the expectations for the unemployment rate over the forthcoming year decreased to 10.6%, down from 10.7% in May, marking the lowest rate since the survey's inception.
Additionally, consumers anticipate a rise in home prices over the next 12 months. In June, house prices were expected to increase by 2.7%, up from 2.6% in May. Meanwhile, expectations for mortgage interest rates slightly dipped to 4.8% from 4.9%.
Earlier this month, the European Central Bank maintained its benchmark interest rates, signaling a potential rate reduction in September amid concerns over persistent inflation. In June, the ECB lowered interest rates for the first time since 2019, citing improved inflation outlooks.
