European Central Bank survey shows eurozone consumers lower inflation expectations for the next year, reducing pressure for rate hikes

2026-06-26 16:10:16 Friday
According to a survey released by the European Central Bank on Friday, eurozone consumers in May lowered their inflation expectations for the next year from 4.0% in April to 3.5%, while three-year and five-year inflation expectations remained unchanged at 2.9% and 2.4%, respectively. Based on a survey of about 19k adults in 11 eurozone countries, the ECB stated that uncertainty in inflation expectations for the next 12 months has declined but remains higher than before the outbreak of the Middle East war. Financial markets expect the ECB to raise interest rates one or two more times, with the next rate hike not being fully priced into the market until autumn.