Consumers in the Eurozone expect prices to rise by more than three percent by next summer, while nominal wages are anticipated to increase by just over one percent, according to the monthly survey conducted by the European Central Bank (ECB).
Next summer, inflation is expected to be 3.4 percent, as estimated by consumers in the ECB’s July survey, indicating that their expectations remain unchanged compared to the previous month’s survey.
In three years, the inflation rate is projected to be 2.3 percent, with an upward revision of 0.1 percentage points from last month’s estimate.
The survey shows that inflation in the Eurozone, according to consumer estimates, will not drop to the ECB’s target level of two percent even in three years.
Nominal wages are expected to rise by 1.1 percent over the next 12 months, slightly weaker than previously estimated in the June survey. Nominal consumption is projected to increase by 3.4 percent, in line with the June estimate.
The Eurozone economy is expected to contract by 0.7 percent over the next 12 months, slightly stronger than the expectations indicated in June.
The unemployment rate is projected to be 11.0 percent next summer, which would mean it should remain more or less at the current perceived level.
Quarterly data, however, shows that the chances of finding a job in the next three months, according to unemployed respondents, have fallen to 22.9 percent, down from 26.6 percent in April, as determined by the ECB.
