In a survey conducted by the ECB with consumers in August, published today, consumers forecasted an inflation rate of 2.5% over the next three years (unchanged from the previous survey) and 2.2% over the next five years (up from 2.1% in the previous survey).
Consumers perceived eurozone inflation as 3.1% in August, remaining unchanged for the seventh consecutive month.
The eurozone inflation rate remained stable at 2% year-on-year in August for the third consecutive month.
The uncertainty regarding inflation expectations over the next 12 months increased slightly in August, according to the ECB.
Conversely, eurozone consumers expect the economy to contract by 1.2% over the next 12 months (same contraction predicted in July’s survey) and unemployment to rise to 10.7% over the next 12 months (up from 10.6% predicted in July’s survey). However, they generally estimate that the labor market will remain stable.
