Economy & Trade
EU Consumers Expect Inflation to Stay Above ECB's 2% Target
The European Central Bank's latest Consumer Expectations Survey for May 2026 reveals that consumers anticipate inflation to be 2.9% over the next 12 months. While slightly lower than the previous month, this expectation remains well above the ECB's 2% target. The survey also shows that consumers expect nominal income to grow by 1.3% and spending to increase by 3.6%. These insights into consumer sentiment are crucial for the ECB's Governing Council when making future monetary policy decisions.
Households expect prices to keep rising faster than incomes, potentially impacting future spending.