Euro Area Consumers Anticipate Slightly Higher Prices Ahead

The European Central Bank (ECB) released its Consumer Expectations Survey for August 2026, revealing that consumers across the euro area are bracing for slightly higher prices in the months and years ahead.

According to the survey, households nudged up their inflation outlook while keeping most other economic expectations broadly frozen in place. The median rate of perceived inflation over the past 12 months held at 3.5% in August, exactly where it stood in July.

However, when looking forward, the numbers shift. Median expectations for inflation over the next 12 months increased to 3.0%, up from 2.9% the month before. The pattern repeats further out: expectations three years ahead rose to 2.9% from 2.7% in July, and five-year expectations climbed to 2.5% from 2.4%.

The survey also shows that uncertainty about where inflation is headed over the next 12 months decreased in August but remains above the level seen before the conflict in the Middle East began.