Finance
Euro zone consumer inflation expectations hold steady
Published by Global Banking & Finance Review®
Posted on January 8, 2026
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 8, 2026
2 min readLast updated: January 20, 2026
Euro zone inflation expectations held steady in November, with consumers predicting a gradual slowdown towards the ECB's 2% target, an ECB survey revealed.
FRANKFURT, Jan 8 (Reuters) - Euro zone consumers kept their inflation expectations unchanged in November, predicting a steady slowdown in price growth towards the European Central Bank's 2% target in the coming years, an ECB survey showed on Thursday.
Inflation has been hovering around 2% most of the past year and fresh data out on Wednesday put price growth right at 2% in December, as falling energy costs offset rising services prices.
Consumers across the currency bloc perceived inflation to be somewhat higher - 3.1% in November - but saw it at 2.8% over the next year, 2.5% three years ahead, and 2.2% five years out, the ECB said, based on a survey of 19,000 adults in 11 euro zone countries.
Inflation, tamed by record-quick ECB rate hikes in 2022 and 2023, has been a non-issue in recent months and, if anything, price growth could go even lower given a persistent drag from falling oil and gas prices.
However, the ECB is unlikely to ease policy for now to stop price growth from going too low, as projections see a rebound later, partly on steady economic growth.
Consumers, who are generally more pessimistic than professional forecasters, expect the economy to contract by 1.3% over the coming year, a more pessimistic scenario than October's 1.1% contraction expectation.
Most forecasters see the euro zone expanding at a rate between 1% and 1.5% this year, after growth of about 1.4% in 2025.
(Reporting by Balazs Koranyi; Editing by Alex Richardson)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks attempt to limit inflation, and avoid deflation, to keep the economy running smoothly.
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
Inflation expectations are the rate at which consumers and businesses expect prices to rise in the future. These expectations can influence economic behavior, including spending and investment decisions.
A consumer survey is a method of gathering information from consumers about their preferences, behaviors, and expectations. This data helps businesses and policymakers understand market trends and consumer sentiment.
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