Eurozone consumers trim short-term inflation expectations, says ECB survey

26th Jun 2026 13:21

(Sharecast News) - Eurozone consumers became less worried about inflation in May, with near-term price expectations cooling despite remaining above the European Central Bank's 2% target.

The ECB's latest Consumer Expectations Survey showed median inflation expectations for the next 12 months fell to 3.5% in May from 4.0% in April.

However, expectations three years ahead held steady at 2.9% and five-year expectations were unchanged at 2.4%.

The survey also found uncertainty surrounding inflation expectations eased from April, although it remained elevated compared with levels seen before the recent Middle East conflict.

Notably, the survey was taken between 7 May and 1 June, before the US and Iran struck an initial deal to end fighting and reopen the Strait of Hormuz - the blocked waterway that has caused energy prices to spike over recent months.

Elsewhere, households became slightly less pessimistic about the economy, with expected economic growth over the coming year improving to -1.7% from -2.2% in April. Income growth expectations edged up to 1.0% from 0.8%, while expected unemployment in 12 months' time ticked up marginally to 11.3% from 11.2%.

The figures suggest consumers believe recent inflationary pressures are beginning to ease without materially altering their longer-term outlook, supporting the view that inflation expectations remain broadly anchored even as short-term price concerns recede.