Euro area median inflation expectations for the next 12 months declined to 2.6% in January 2026, down from 2.8% in December and marking a six‑month low. Expectations for inflation three years ahead remained stable at 2.6%, while five‑year‑ahead inflation expectations edged down to 2.3% from 2.4%. Uncertainty surrounding inflation expectations over the next 12 months was unchanged in January.
Respondents in the lower income quintiles continued to report, on average, slightly higher perceived inflation and short‑term inflation expectations than those in higher income quintiles, a pattern in place since 2023. Nonetheless, the overall trajectory of inflation perceptions and expectations remained broadly similar across income groups. Younger respondents (aged 18–34) again reported lower inflation perceptions and expectations than older respondents (aged 35–54 and 55–70).
