Euro Area Consumer Inflation Expectations Edge Up
Median expectations for price growth over the next 12 months in the Euro Area increased to 3% in August 2026 from 2.9%. Expectations for inflation three years ahead also increased, to 2.9% from 2.7%, while the five-year outlook went up to 2.5% from 2.4%. Uncertainty about expectations for inflation over the next 12 months decreased, ...
Consumer inflation expectations in the Euro Area climbed in August 2026, with median forecasts for price growth over the next year rising to 3% from 2.9%, according to Trading Economics. Anticipations for inflation three years ahead also surged, reaching 2.9% from 2.7%, while the five-year outlook improved to 2.5% from 2.4%. The uncertainty surrounding expectations for inflation over the upcoming 12 months decreased, though it remained higher than levels seen before the Middle East conflict.
Lower-income households were more likely to anticipate higher inflation compared to wealthier groups, while younger consumers held more conservative expectations than older respondents. Notably, expectations for nominal income growth remained stagnant at 1%, while economic growth forecasts stayed at -1.2%. Unemployment rate projections for the next year dropped slightly to 11% from 11.2%.
Furthermore, consumers predicted their home prices would climb by 3.4% within the next 12 months and mortgage interest rates would increase by 4.9%, unchanged from the previous month.
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