Median inflation expectations in the eurozone for the next 12 months declined for a second consecutive month in June 2026, falling to 3% from 3.5% in May, the lowest level since February. Consumers now anticipate that the price of their homes will rise by 3.4% over the coming year, down from 3.6% in May. By contrast, expectations for mortgage interest rates edged up to 5% from 4.9%.
Looking further ahead, inflation expectations three years out eased slightly to 2.8% from 2.9%, while five‑year‑ahead inflation expectations were unchanged at 2.4%. Uncertainty about inflation over the next 12 months declined for the second month in a row, though it still remains above the level seen before the onset of the war in the Middle East.
Elsewhere, expected nominal spending growth over the next 12 months fell to 3.6% from 3.8% in May. Expectations for economic growth in the coming year improved marginally, to -1.4% from -1.7%. At the same time, expectations for the unemployment rate 12 months ahead edged down to 11.2% from 11.3% in May.
