Euro area inflation expectations decline to new lows

Median inflation expectations for the Euro Area over the next 12 months fell to 2.4% in September 2024, the lowest since September 2021, down from 2.7% in August.

Euro area inflation expectations decline to new lows

Similarly, three-year inflation expectations decreased by 0.2 percentage points to 2.1%, marking the lowest since February 2022. Uncertainty regarding inflation expectations for the next year remained unchanged at its lowest point since the Russian invasion of Ukraine in February 2022. On a positive note, income growth expectations rose to 1.3%, up from 1.2% in August, while expectations for nominal spending growth stayed steady at 3.2%, the lowest since February 2022.

Unemployment rate forecasts rise to 10.6% amid stable economic growth expectations

Economic growth expectations remained stable at -0.9%, but forecasts for the unemployment rate a year ahead rose to 10.6%, compared to 10.4% in August.