MNI BRIEF: EZ Inflation Expectations Edge Lower - ECB Survey
MNI (LONDON) - Consumer inflation expectations across the eurozone fell again in August, the latest ECB survey shows.
Helped by declining perceptions of current inflation -- falling to 3.9% in August from 4.1% in July, but still above the actual 2.5% y/y reported by Eurostat in August -- expectations at the one-year and three-year horizons slipped slightly below past perceptions of the inflation rate. (see MNI BRIEF: EZ Inflation Data Suggests Downside Surprise For ECB )
Expectations for inflation over the next 12 months edged down to 2.7% from 2.8% previously, the lowest level since September 2021. Median expectations for inflation three years ahead edged down by 0.1 percentage points in August to 2.3%, back to their June level. Uncertainty about inflation expectations over the next 12 months remained unchanged at its lowest level since February 2022, when Russia invaded Ukraine.