Euro Area Inflation Expectations

Median consumer inflation expectations in the Eurozone edged up to 2.8% in October 2025 from 2.7% in September. Expectations for inflation three years ahead were unchanged at 2.5%, as were inflation expectations for five years ahead, which remained steady at 2.2%. Also, uncertainty about inflation expectations over the next 12 months remained unchanged, with younger respondents (aged 18-34) continuing to report lower inflation perceptions and expectations than older respondents (aged 35-54 and 55-70). Meanwhile, consumers’ nominal income growth expectations increased to 1.2% from 1.1%. Expected nominal spending growth was also steady at 3.5%. In addition, economic growth expectations for the next 12 months became less negative (-1.1% vs -1.2%). Expectations for the unemployment rate 12 months ahead increased to 11% from 10.7%. Finally, consumers expected the price of their home to increase by 3.5% over the next 12 months, unchanged from September.