Euro Area Consumers See Inflation Rise Across All Horizons

The European Central Bank (ECB) has released its Consumer Expectations Survey for August 2026, revealing that Euro area consumers' inflation expectations have risen across all horizons. The one-year median inflation expectation is now at 3.0 per cent, up from 2.9 per cent in July.

The survey showed that three-year and five-year expectations also rose, to 2.9 per cent and 2.5 per cent respectively. However, median perceived inflation over the previous 12 months remained unchanged at 3.5 per cent.

Uncertainty about inflation expectations decreased but remains higher than before the start of the conflict in the Middle East. Younger respondents aged 18-34 reported lower inflation perceptions and expectations compared to those aged 35-54 and 55-70.