Eurozone Consumers Expect Easing Inflation, But Economic Conditions Remain Uncertain

The European Central Bank's Consumer Expectations Survey shows that eurozone consumers expect inflation to ease gradually, but economic conditions are not expected to improve significantly. Despite this, consumers do not feel real financial security yet.

According to the survey, harmonised inflation in Cyprus stood at 4% in July, with price pressures remaining high for households. Consumers perceive inflation over the past 12 months at 3.5%, down from 3.6% in June.

The biggest concern is disposable income, as consumers expect their nominal income to rise by just 1.0% over the next 12 months, while expecting their spending to increase by 3.6%. This means that many consumers still see the cost of living rising faster than their incomes.