Inflation Expectations Show Modest Decline

The European Central Bank (ECB) has released its June Consumer Expectations Survey, indicating a slight decrease in inflation expectations for the next 12 months. The figures have dropped by 0.2 percentage points to 2.6%, suggesting a cautious optimism among consumers.

Stability in Longer-Term Expectations

Interestingly, the survey highlights stability in three-year and five-year ahead inflation expectations, remaining steady at 2.4% and 2.1%, respectively. This consistency underscores the ECB's effectiveness in maintaining long-term economic stability.

Economic Growth and Unemployment Outlook

On the economic growth front, there's a marginal improvement in one-year-ahead expectations, moving from negative 1.1% in May to negative 1% in June. Additionally, the unemployment rate expectations for the next 12 months have seen a slight decrease of 0.1 percentage points to 10.3%.

Housing Market Expectations

The ECB also noted a minor adjustment in housing price expectations, with consumers anticipating a 3.1% increase over the next 12 months, down from 3.2% in May. This subtle shift reflects the dynamic nature of the housing market.