Consumer expectations of the euro area on inflation developments over the coming year have declined substantially in May, reveals the research undertaken by the European Central Bank (ECB) today.
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26/06/2026
by
Lusa
ANDm may, the median rate of inflation percepted in the last 12 months remained 4%, but inflation expectations for one year decreased to 3.5%, less half a percentage point than in april and lower reading since last february.
In this sense, although the uncertainty about inflation expectations for the next 12 months has decreased, the ECB warned that it remained at a higher level than before the start of the Middle East war.
In the long term, inflation expectations for the next three years remained at 2.9%, and expectations for the next five years again at 2.4%.
Among the interviewees, those in the lower income group continued to perceive and express higher inflation expectations on average than those in higher incomes.
In turn, younger respondents (from 18 to 34 years) continued to report lower inflation perceptions and expectations than older respondents (from 35 to 54 years and from 55 to 70 years).
On the other hand, the ECB consultation shows that consumer nominal income growth expectations for the next 12 months increased to 1% in May, compared to 0.8% in April.
As for nominal expenditure, the perceived growth during the last 12 months increased to 5.4%, compared to 5.3% in April, while the expected growth of nominal expenditure for the next 12 months decreased to 3.8%, compared to 4.3% in April