FRANKFURT, Oct. 8 (Xinhua/APP): Consumers in the euro area expect that inflation will remain unchanged for the next 12 months, according to a survey released by the European Central Bank (ECB) on Friday.
The median expectation for the three years ahead also remains unchanged, the survey said, but consumers expect slight economic growth, as well as increases in nominal income and spending.
The central bank’s consumer expectations survey, a monthly survey of around 14,000 adults from six euro area countries, showed that inflation expectations in August for the next 12 months and three years ahead remained unchanged at 5.0 percent and 3.0 percent respectively. The ECB is targeting an inflation rate of 2 percent over the medium term.
Consumers estimate that their nominal income will grow by 1.0 percent over the next 12 months, up from 0.8 percent in July. However, they expect a faster increase in expenses, of 4.5 percent for the next 12 months, up from 4.2 percent in July. This is due to the increases anticipated by lower- and middle-income respondents.
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