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Eurozone Consumer Inflation Expectations Decline in July

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The median rate of perceived inflation by euro area consumers for the year ahead decreased month over month in July, according to a European Central Bank survey published Friday.

The latest monthly ECB Consumer Expectations Survey showed that median expectations for inflation in the next 12 months edged down to 2.9% in July from 3% in June. The estimate for the next three years also declined to 2.7% from 2.8%, while the expectation for five years ahead held steady at 2.4%.

Meanwhile, the uncertainty about inflation expectations for the next 12 months was unchanged but stayed at an elevated level compared with before the outbreak of the Middle East war.

The ECB continued to see lower inflation expectations among younger survey respondents aged between 18 and 34 years, compared with those aged 35 to 54 and 55 to 70.

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