Median consumer inflation expectations in the European Union (EU) for the next 12 months increased noticeably in September to 4 per cent from 3.5 per cent in August, while expectations for three years ahead remained unchanged at 2.5 per cent, according to the European Central Bank (ECB).

The median rate of perceived inflation over the previous 12 months edged up to 8 per cent from 7.9 per cent.

Inflation expectations, particularly at the three-year horizon, remained well below the perceived past inflation rate. Uncertainty about inflation expectations over the next 12 months increased.

Expectations for nominal income growth over the next 12 months remained unchanged in September at 1.2 per cent, but expectations for nominal spending growth increased slightly.

Perceptions of nominal spending growth over the previous 12 months decreased further to 6.2 per cent during the month from 6.4 per cent in August and 6.7 per cent in July.

Expectations for economic growth over the next 12 months became more negative, standing at minus 1.2 per cent compared with minus 0.8 per cent in August, and the expected unemployment rate in 12 months increased to 11.4 per cent in September compared with 11.1 per cent in the previous month, an ECB release said.

Fibre2Fashion News Desk (DS)

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