Inflation expectations in the euro area softens in February

Brusels (DPA -AFX) -The expectations of inflation among consumers in the euro area reduced in February, showed the survey on consumers’ expectations from the European Central Bank on Friday.

Inflation expectations for the following year were softened at 2.6 percent in February from 2.8 percent in January. Meanwhile, expectations for three years before remained unchanged at 2.4 percent.

The survey revealed that the uncertainty about the expectations of inflation in the next twelve months remained unchanged, for the sixth consecutive time, at the lowest level of February 2022.

The nominal expectations of increasing consumers’ income over the next twelve months have dropped to 0.9 percent in January from 1.1 percent in December, showed the survey.

The expectations of economic growth for the next twelve months were less negative, because it improved to -1.1 percent from -1.3 percent.

Moreover, consumers continued to expect the rate of future unemployment to be only slightly higher than the current perceived unemployment rate. The rate is observed at 9.9 percent, which indicates a large -scale labor market.

Consumers expected the price of their house to increase 3.0 percent in the next twelve months, which was just over 2.9 percent estimated in December.