Eurozone Inflation Expectations Rise Across All Horizons

The European Central Bank (ECB) released its Consumer Expectations Survey on Friday, showing that Eurozone consumers raised their inflation expectations across all time horizons in August. The survey found that median inflation expectations for the next 12 months increased to 3% from 2.9% in July.

Expectations for inflation three years ahead rose more sharply to 2.9% from 2.7%, while the five-year outlook climbed to 2.5% from 2.4%. 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 remained above the level recorded before the outbreak of the conflict in the Middle East, according to the ECB. Respondents in the lowest income group continued to report higher inflation perceptions and expectations than those in the highest income group.