Eurozone Consumers Ease Inflation Expectations Amidst Economic Uncertainty

The European Central Bank (ECB) released its Consumer Expectations Survey for July, showing that consumers in the Eurozone have eased their inflation expectations at both short and medium horizons.

Inflation expectations over the past 12 months decreased to 3.5% from 3.6% in June, while those for the next 12 months fell to 2.9% from 3%. Expectations three years ahead declined to 2.7% from 2.8%, but remained unchanged at 2.4% for five years ahead.

The survey also showed that lower-income households continued to report higher inflation perceptions and expectations compared to higher-income households, while younger respondents aged 18-34 reported lower inflation expectations than those in the 35-54 and 55-70 age groups.