The European Central Bank (ECB) conducted a survey of consumer expectations for inflation, with the key results noted below.
Perceived inflation over the previous 12 months continued to increase, with the median rate now standing at 7.9%, up from 7.2% in June.
Compared to June, consumer expectations for inflation over the next 12 months remained unchanged at 5%, while those for inflation three years ahead rose.
Consumers see inflation in 3 years at 3% vs 2.8% in June.
Consumers again slightly lowered their expectations for the growth in price of their homes over the next 12 months to 3.2%.
Expectations for mortgage interest rates 12 months ahead continued to drift up to 4.3% and now stand 1.0% higher than at the beginning of 2022.
Expectations declined for economic growth over the next 12 months and rose for unemployment in 12 months’ time.
Market reaction
The above survey findings have little to no impact on the shared currency, as EUR/USD consolidates its rebound around 0.9975 ahead of the critical US NFP report. The pair is up 0.32% on a daily basis.
