FX.co ★ Eurozone Consumer Inflation Expectations Steady at 2.6%

In July 2025, median consumer inflation expectations in the Eurozone remained constant at 2.6%, marking the lowest level observed since February. Forecasts for inflation three years into the future climbed slightly to 2.5% from the previous 2.4%, while the five-year outlook remained stable at 2.1% for the eighth straight month. A consistent pattern since 2023, lower income groups persistently report marginally higher inflation perceptions and short-term expectations compared to higher income earners. Nevertheless, the broader trend of inflation perceptions and expectations remains closely aligned across different income levels. Younger individuals, aged 18-34, continue to report lower perceived inflation and expectations than their older counterparts aged 35-54 and 55-70, though the gap has narrowed compared to previous years. Moreover, economic growth projections for the coming year have turned more negative, with a -1.2% forecast versus the prior -1%, while the expected unemployment rate for the next 12 months climbed to 10.6% from 10.3%.