ECB: consumers’ one-year inflation expectations fell to 2.9 per cent in July (from 3 per cent)

(Il Sole 24 Ore Radiocor) - European consumers’ median inflation expectations for the next 12 months fell in July, from 3.0 per cent to 2.9 per cent. Median three-year inflation expectations also fell, dropping from 2.8% to 2.7%.

This is what emerges from the monthly data published by the ECB. Median five-year inflation expectations remained unchanged at 2.4 per cent, whilst the perceived inflation rate over the previous 12 months fell to 3.5 per cent, from 3.6 per cent in June. Finally, uncertainty surrounding inflation expectations for the next 12 months remained unchanged and stayed above the level prevailing before the start of the war in the Middle East.