Median perceived inflation over the previous 12 months was unchanged at 3.5 per cent in August, the survey by the European Central bank (ECB) showed. Uncertainty about inflation expectations over the next 12 months decreased, but remained higher than the level prevailing before the start of the conflict in the Middle East. Respondents in the bottom income quintile continued to report higher inflation perceptions and expectations, on average, than those in the top quintile, while younger respondents aged 18-34 continued to report lower inflation perceptions and expectations than respondents aged 35-54 and 55-70. The ECB in a press release said consumers’ expectations for nominal income growth over the next 12 months were unchanged at 1.0 per cent.
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