FX.co ★ Euro Area Inflation Expectations Down for 2nd Month

In June 2025, median consumer inflation expectations in the Eurozone decreased for the second straight month, reaching a four-month low of 2.6%, down from 2.8% in May. Projections for inflation three years into the future remained steady at 2.4%, while the five-year outlook also stayed constant at 2.1% for the seventh month in a row. Interestingly, younger respondents continue to perceive and expect lower inflation rates compared to older individuals, although this disparity has lessened compared to previous years. Concurrently, projections for nominal income growth over the next year held steady at 1% in June, whereas anticipated nominal spending growth further declined to 3.2% from 3.5% in May. Additionally, the outlook for economic growth over the forthcoming 12 months became slightly less negative, changing from -1.1% to -1%, while expectations for the unemployment rate in a year's time dipped marginally to 10.3% from 10.4%.