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Eurozone Consumer Inflation Expectations Up in August

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The median rate of perceived inflation by euro area consumers for the year ahead rose month over month in August, 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 up to 3% in August from 2.9% in July. The estimate for the next three years increased to 2.9% from 2.7%, while the expectation for five years ahead ticked up to 2.5% from 2.4%.

Meanwhile, the uncertainty about inflation expectations for the next 12 months declined 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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