Eurozone Consumers Hold Steady on Inflation Outlook, ECB Survey Shows

Eurozone households continue to anticipate inflation levels slightly above the European Central Bank’s 2% target, maintaining steady expectations amid a cautious economic backdrop. According to the ECB’s August Consumer Expectations Survey, the median expected inflation rate over the upcoming 12 months held firm at 2.6%, unchanged from July. Expectations for inflation three years ahead ticked up slightly to 2.5%, while projections for five years out remained stable at 2.1%—marking the eighth consecutive month at that level.

These figures offer reassurance to ECB policymakers, suggesting that consumers' longer-term inflation views remain broadly anchored—especially important as short-term volatility in energy and food prices fades. The central bank continues to face a delicate balancing act: keeping rates stable to underpin economic stability, while remaining ready to adjust policy if inflationary or disinflationary risks emerge.

Read More : Euro zone consumers keep inflation expectations stable, ECB poll | Reuters
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