Consumer inflation expectations decline in February
Euro area consumers' short-term inflation expectations decreased slightly in February, while perceived inflation remained stable. The ECB's monthly survey also showed less negative economic growth expectations.
Inflation outlook softens slightly
The median of perceived inflation over the past twelve months remained unchanged at 3.0 percent in February.
Short-term (12-month) and medium-term (3-year) inflation expectations both decreased from 2.6 percent in January to 2.5 percent.
Longer-term (5-year) inflation expectations remained constant at 2.3 percent.
Uncertainty regarding short-term inflation expectations also showed no change.
Consumers in lower income quintiles continued to report slightly higher inflation perceptions and short-term expectations than those in upper income quintiles, a trend observed since 2023.
Economic and housing market shifts
Expectations for nominal income growth over the next twelve months held steady at 1.2 percent, while expected nominal spending growth rose from 3.4 percent to 3.5 percent.
Economic growth expectations for the next twelve months became less negative, improving from -1.1 percent in January to -0.9 percent in February.
Unemployment rate expectations for twelve months ahead decreased from 11.0 percent to 10.8 percent.
Consumers expected house prices to rise by 3.6 percent over the next twelve months, a slight decrease from 3.7 percent in January, while mortgage rate expectations remained unchanged at 4.7 percent.