Financial News: Eurozone Consumers Lower 1-Year Inflation Expectation: ECB

Eurozone Consumers Lower 1-Year Inflation Expectation: ECB Survey

07/29/2025 - 09:12:00 (RTTNews)

(RTTNews) - Euro area households' inflation expectations for the short-term eased in June while they medium to longer term forecasts for price growth were unchanged, survey data from the European Central Bank showed on Tuesday.

Median expectations for inflation over the next 12 months decreased by 0.2 percentage points to 2.6 percent, results of the monthly ECB Consumer Expectations Survey, which is conducted online among 19,000 consumers, showed. This suggested that the increases in March and April were fully reversed in May and June. Expectations for three years ahead were steady at 2.4 percent and those for five years ahead were unchanged at 2.1 percent for the seventh consecutive month.

Last week, <a href=https://www.rttnews.com/3557186/ecb-leaves-rates-unchanged-as-expected.aspx target=_blank >the ECB held its key interest rates steady</a> as policymakers assessed that Eurozone price pressures continue to ease but acknowledged that the economic environment remains highly uncertain mainly due to the trade tariff wars.

Consumers' expectations for nominal income growth over the next 12 months remained unchanged at 1.0 percent in June, while their expected spending growth over the same period decreased further to 3.2 percent, the ECB survey showed.

The apparent stability in income growth conceals a decline in expectations among higher income individuals, offset by an increase in expectations among lower income groups, the ECB said.

"This decline reflects the heightened economic uncertainty of recent months as well as lower expected inflation," the bank said.

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