- Median rate of perceived inflation over the previous 12 months was 6.9% (previously 7.6%)
- Median expectations for inflation over the next 12 months was 3.2% (previously 3.5%)
- Consumer expectations for nominal income growth seen at 1.2% (unchanged)
- Expectations for nominal spending growth over the next 12 months seen at 3.6% (unchanged)
The takeaway from this is that inflation expectations are at least softening and that is a helpful development for the ECB. Of note, the expectations at the one-year horizon are the lowest since February 2022. However, the uncertainty about inflation expectations for the year ahead remained unchanged.
