Euro Area Inflation Expectations Fall for Third Straight Month

The Euro Area inflation expectations have decreased for the third consecutive month, according to recent data. The median expectation for price growth over the next 12 months has eased to 2.9% in July 2026 from 3% in June.

This decline is consistent with lower expectations for inflation three years ahead, which now stands at 2.7%, down from 2.8%. However, the five-year outlook remains unchanged at 2.4%.

Interestingly, uncertainty surrounding near-term inflation expectations has remained elevated compared to pre-conflict levels. Lower-income households continue to perceive and anticipate higher inflation than their higher-income counterparts.