Euro Area Inflation Expectations Down for 2nd Month

Median consumer inflation expectations in the Eurozone fell for a second consecutive month to 2.6% in June 2025, the lowest in four months, compared to 2.8% in May. Expectations for three years ahead were unchanged at 2.4%, while expectations for inflation five years ahead held steady at 2.1% for the seventh consecutive month. Younger respondents continued to report lower inflation perceptions and expectations than older respondents, although the gap was narrower than in previous years. Meanwhile, consumers’ expectations for nominal income growth over the next 12 months remained unchanged at 1% in June but expected nominal spending growth decreased further to 3.2% from 3.5% in May. In addition, economic growth expectations for the next 12 months became less negative (-1% vs -1.1%) and expectations for the unemployment rate 12 months ahead edged down to 10.3% from 10.4%