Euro Area Consumer Inflation Expectations Fall for 2nd Month

2026-07-24 08:18 By Joana Taborda 1 min. read

Eurozone median inflation expectations for the next 12 months fell for a second consecutive month to 3% in June 2026, the lowest since February, from 3.5% in May.

Consumers expect the price of their home to increase by 3.4% over the next 12 months, compared with 3.6% in May.

Expectations for mortgage interest rates went up to 5% from 4.9%.

Meanwhile, expectations for inflation three years ahead also declined to 2.8% from 2.9% while expectations for inflation five years ahead remained unchanged at 2.4%.

Uncertainty about inflation over the next 12 months decreased for the second consecutive month, but remained higher than the level prevailing before the start of the war in the Middle East.

Elsewhere, expected nominal spending growth over the next 12 months decreased to 3.6% from 3.8% in May.

Expectations for economic growth over the next 12 months increased to -1.4% from -1.7% and expectations for the unemployment rate 12 months ahead decreased to 11.2% from 11.3% in May.



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Euro Area Consumer Inflation Expectations Fall for 2nd Month
Eurozone median inflation expectations for the next 12 months fell for a second consecutive month to 3% in June 2026, the lowest since February, from 3.5% in May. Consumers expect the price of their home to increase by 3.4% over the next 12 months, compared with 3.6% in May. Expectations for mortgage interest rates went up to 5% from 4.9%. Meanwhile, expectations for inflation three years ahead also declined to 2.8% from 2.9% while expectations for inflation five years ahead remained unchanged at 2.4%. Uncertainty about inflation over the next 12 months decreased for the second consecutive month, but remained higher than the level prevailing before the start of the war in the Middle East. Elsewhere, expected nominal spending growth over the next 12 months decreased to 3.6% from 3.8% in May. Expectations for economic growth over the next 12 months increased to -1.4% from -1.7% and expectations for the unemployment rate 12 months ahead decreased to 11.2% from 11.3% in May.
2026-07-24
Euro Area Consumer Inflation Expectations Ease
Eurozone median inflation expectations for the next 12 months declined to 3.5% in May 2026, the lowest level in three months, down from 4.0% in each of the previous two months, which marked the highest reading since 2023. Consumers also expect house prices to rise by 3.6% over the next year, slightly below 3.7% in April. Expectations for mortgage interest rates were unchanged at 4.9%. Meanwhile, longer-term inflation expectations were steady, at 2.9% for three years ahead and 2.4% for five years ahead. Uncertainty around 12-month inflation expectations eased but remained elevated compared with levels seen before the outbreak of the Middle East conflict. Elsewhere, consumers’ expectations for nominal income growth over the next 12 months rose to 1.0% from 0.8% in April. Economic growth expectations for the year ahead improved to -1.7% from -2.2% and expectations for the unemployment rate 12 months ahead ticked up slightly to 11.3% from 11.2% in April.
2026-06-26
Euro Area Consumer Inflation Expectations Unchanged in April
Eurozone median inflation expectations for the next 12 months were steady at 4% in April 2026, the same as in March and staying at 2023-highs. Consumers expected the price of their home to increase by 3.7% over the next 12 months, which was unchanged from March and expectations for mortgage interest rates also remained unchanged. In addition, expectations for inflation three years ahead decreased to 2.9% from 3% and inflation expectations for five years ahead remained unchanged at 2.4%. Meanwhile, economic growth expectations for the next 12 months became more negative, decreasing to -2.2% from -2.1%. By contrast, expectations for the unemployment rate 12 months ahead decreased to 11.2% from 11.3% in March. In addition, consumers’ nominal income growth expectations over the next 12 months decreased to 0.8% in April from 1.2% in March.
2026-06-01