News Brief · Eurozone · Published 23 Aug 2026, 12:10
Euro-area households lowered near-term inflation expectations
The ECB survey shows how consumers see future prices, incomes and spending, expectations that can influence wage demands and present behaviour.
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Median inflation expectations fell to 2.9% for the next 12 months and 2.7% three years ahead in the ECB's July 2026 Consumer Expectations Survey.
What happened
The survey recorded slightly lower one- and three-year inflation expectations, while the five-year measure remained unchanged at 2.4%. Expected nominal income growth was 1.0%.
Why it matters
Well-anchored expectations reduce the risk that temporary price shocks become embedded in wages, contracts and firms' pricing decisions.
Economic context
Expectations are survey beliefs rather than forecasts and differ across households, but central banks monitor them for signs of second-round inflation effects.
Key data
- inflation_3_years
- 2.7%
- inflation_5_years
- 2.4%
- inflation_12_months
- 2.9%
- income_growth_expectation
- 1.0%
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