Eurozone households have significantly lowered their inflation forecasts for the coming year, according to the latest Consumer Expectations Survey released by the European Central Bank on Friday.
The median expectation for inflation over the next 12 months dropped notably during May, marking a clear shift in consumer sentiment toward lower price pressures.
As households become less concerned about rising costs, the psychological anchor for inflation appears to be stabilizing, which could support the ECB’s mandate to keep inflation close to its 2% target.
The decline in expected inflation aligns with broader signs of easing price dynamics across the bloc.
As households become less concerned about rising costs, the psychological anchor for inflation appears to be stabilizing, which could support the ECB’s mandate to keep inflation close to its 2% target.
This development is particularly relevant for policymakers assessing the trajectory of price stability in the second half of 2026.
The survey results come alongside other recent data indicating a mixed but stabilizing economic picture.