2025.10.2809:20:35UTC+00Euro Area Inflation Expectations Edge Down

In September 2025, the median consumer inflation expectations in the Eurozone decreased slightly to 2.7%, down from 2.8% in August. Meanwhile, the projections for inflation three years into the future remained steady at 2.5%, as did the five-year forecasts, which held firm at 2022 highs of 2.2%. Additionally, there was a stabilization in the uncertainty surrounding inflation expectations.

When it comes to potential income changes, consumers anticipated a nominal income growth rate of 1.1% for the next year, while their economic growth forecast held constant at -1.2%. Similarly, expectations for the unemployment rate 12 months from now stayed stable at 10.7%. This reflects a perception that the future unemployment rate will be only marginally higher than the currently perceived rate of 10.2%, indicating an overall stable outlook for the labor market.

On another note, consumers predicted a 3.5% rise in the price of their homes over the next year, an increase from the 3.4% predicted in August.