ECB survey shows: Consumer inflation expectations in the eurozone remain stable

BERLIN (Reuters) – Euro zone consumer inflation expectations for the next 12 months remained stable in July for the third month in a row, a European Central Bank survey showed on Friday.

The ECB's consumer expectations survey is one of the indicators that central bankers in the 20 euro area countries use to gauge whether the public has confidence in their ability to reduce inflation to the two percent target.

The latest survey shows that the average consumer expects inflation to average 2.8 percent over the next 12 months. Inflation has remained stable compared to May and June, after falling steadily from 3.3 percent in January.

Inflation in three years was expected at 2.4%, slightly above the 2.3% expected in the previous month.

Both income and spending growth expectations declined, and consumers became somewhat more negative about economic growth expectations, with GDP expected to decline by 1.0%.

(Reporting by Miranda Murray and Frank Siebelt; Editing by Toby Chopra)