Eurozone Consumers Raise Inflation Expectations Across All Horizons

The European Central Bank (ECB) has released its Consumer Expectations Survey, which shows that Eurozone consumers have increased their inflation expectations across all time horizons in August.

The median inflation expectation for the next 12 months rose to 3% from 2.9% in July, while expectations for inflation three years ahead climbed to 2.9% from 2.7%. The five-year outlook also increased to 2.5% from 2.4%.

However, the median rate of inflation perceived by consumers over the previous 12 months remained unchanged at 3.5%. Uncertainty surrounding expectations for inflation over the next year declined but still remains above pre-conflict levels.