Median expectations for price growth in the euro area over the next 12 months rose to 3% in August 2026, up from 2.9%. Inflation expectations three years ahead also increased, to 2.9% from 2.7%, while the five-year outlook edged up to 2.5% from 2.4%.
Uncertainty surrounding 12‑month inflation expectations declined, but remained above the levels observed before the start of the conflict in the Middle East. Lower-income households continued to both perceive and anticipate higher inflation than higher-income groups, whereas younger consumers maintained more moderate inflation expectations than older respondents.
Expectations for nominal income growth were unchanged at 1%. Projections for economic growth remained at -1.2%, while expectations for the unemployment rate 12 months ahead fell to 11% from 11.2%.
Consumers also expected the price of their home to increase by 3.4% over the next 12 months, and anticipated that mortgage interest rates would rise by 4.9%, unchanged from July.
