Greek Consumers Lead Eurozone Pessimism Amid Easing Inflation

The European Central Bank's consumer expectations survey for June shows that eurozone consumers are cautiously optimistic about spending, but remain concerned about the economic outlook.

According to the survey, inflation expectations for the next 12 months fell to 3.0 percent from 3.5 percent, while three-year expectations edged down to 2.8 percent from 2.9 percent. Five-year expectations remained steady at 2.4 percent.

Greek consumers are the most pessimistic in both the EU and the eurozone, with perceived inflation over the past 12 months reaching 10.1 percent - more than double the eurozone average of 4.9 percent. Expectations for Greek inflation over the next 12 months fell to 7.1 percent from 10.0 percent and 9.9 percent respectively, but still remain the highest in the eurozone.

Greek households also hold the most pessimistic growth outlook in the eurozone, expecting economic contraction of 5.4 percent over the next 12 months, compared with a eurozone average expectation of -1.4 percent.