ECB Consumer Expectations Survey results – May 2025

Compared with April 2025:

  • median consumer perceptions of inflation over the previous 12 months remained unchanged, while median expectations for inflation one and three years ahead decreased, and median inflation expectations for five years ahead remained unchanged;
  • expectations for nominal income growth over the next 12 months increased, while expectations for spending growth over the next 12 months decreased;
  • expectations for economic growth over the next 12 months became less negative, while the expected unemployment rate in 12 months’ time decreased;
  • expectations for growth in the price of homes over the next 12 months remained unchanged, while expectations for mortgage interest rates 12 months ahead declined.

Published on the 1st of July 2025

Inflation


In May, the median rate of perceived inflation over the previous 12 months remained unchanged at 3.1% for the fourth consecutive month. This was its lowest level since September 2021. Median expectations for inflation over the next 12 months decreased by 0.3 percentage points to 2.8%. Expectations for three years ahead also decreased, by 0.1 percentage points, to 2.4% while expectations for inflation five years ahead were unchanged at 2.1% for the sixth consecutive month. Uncertainty about inflation expectations over the next 12 months decreased in May, reversing the increase observed in April. While the broad evolution of inflation perceptions and expectations remained relatively closely aligned across income groups, over the previous year and a half inflation perceptions and short-horizon expectations for lower income quintiles were, on average, slightly above those for higher income quintiles. Younger respondents (aged 18-34) continued to report lower inflation perceptions and expectations than older respondents (aged 35-54 and 55-70), albeit to a lesser degree than in previous years. (Inflation results)

Updated on the 1st of July 2025