MNI BRIEF: Consumer Price Expectations Dip Again In June

Inflation expectations for consumers across the eurozone decreased in June both for the next 12 months and for three years ahead, the European Central Bank's latest survey showed.

The median rate of expected inflation over the next 12 months fell to 3.4%, from 3.9% in May, and three-year expectations eased to 2.3% from 2.5%. Having fallen in the previous two months, uncertainty about inflation expectations over the next 12 months was unchanged.

The survey shows inflation expectations remaining well below the perceived past inflation rate, particularly at the three-year horizon.

The survey also showed the 12-month nominal income growth outlook remained unchanged, while expectations for nominal spending growth declined further. (See MNI INTERVIEW: ECB Pause Likely In Sept-ExBank Of Cyprus Chief)

A potential de-anchoring of inflation expectations has been a key concern of many policymakers, and is cited often by Executive Board member Isabel Schnabel.