Euro zone consumers' inflation expectations hold steady, ECB survey shows

[August 23, 2024]  BERLIN (Reuters) - Euro zone consumers' inflation expectations over the next 12 months remained steady for the third month in a row in July, a European Central Bank survey showed on Friday.   

People buy food at a market in Budapest, Hungary, December 3, 2022. REUTERS/Marton Monus/File Photo

The ECB's Consumer Expectations Survey is one input that central bankers from the euro zone's 20 countries use to gauge whether the public has faith in their ability to bring down inflation to their 2% goal.

The latest poll showed the median consumer expected inflation to average 2.8% over the next 12 months, stable from May and June after a steady fall from 3.3% in January.

Inflation three years ahead was seen at 2.4%, slightly above the 2.3% expected the previous month.

Expectations for income and spending growth both declined, and consumers turned slightly more negative on economic growth expectations, with GDP seen contracting by 1.0%.

(Reporting by Miranda Murray and Frank Siebelt; Editing by Toby Chopra)

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