Euro Area Inflation Expectations Fall in May

Median consumer inflation expectations in the Eurozone fell to 2.8% in May 2025, the lowest in three months, compared to 3.1% in April.

Expectations for three years ahead also decreased to 2.4% from 2.5% while expectations for inflation five years ahead were unchanged at 2.1% for the sixth consecutive month.

In addition, uncertainty about inflation expectations decreased, with younger respondents continuing to report lower inflation perceptions and expectations than older respondents.

Meanwhile, consumers’ nominal income growth expectations over the next 12 months increased to 1% from 0.9% but expected nominal spending growth went down to 3.5% from 3.7%.

Economic growth expectations for the next 12 months became less negative, standing at -1.1% in May compared with -1.9% in April.

Expectations for the unemployment rate 12 months ahead decreased to 10.4% from 10.5% in April.