Median expectations for price growth over the next 12 months in the Euro Area increased to 3% in August 2026 from 2.9%. Expectations for inflation three years ahead also increased, to 2.9% from 2.7%, while the five-year outlook went up to 2.5% from 2.4%. Uncertainty about expectations for inflation over the next 12 months decreased, but remained higher than the level prevailing before the start of the conflict in the Middle East. Lower-income households continued to perceive and anticipate higher inflation than higher-income groups, while younger consumers maintained more moderate expectations than older respondents. Also, expectations for nominal income growth were unchanged at 1%. Those for economic growth remained at -1.
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