ECB Survey: Euro-Area Consumers Maintain Elevated Inflation Expectations at 2.6%
SDG 8: Decent Work and Economic Growth | SDG 17: Partnerships for the Goals
Institution: Reserve Bank of India (RBI) | Ministry of Finance | Ministry of Statistics and Programme Implementation
According to the European Central Bankβs Consumer Expectations Survey for July 2025, households across the euro area continue to expect inflation of around 2.6% over the next 12 months, unchanged from June and notably higher than the ECBβs 2% target. Longer-term expectations (3 years ahead) rose slightly to 2.5%, while the 5-year outlook remained steady at 2.1%.
The ECB maintained its deposit rate at 2%, planning to keep policy decisions data-driven and open to adjustments in response to evolving global pressures, particularly potential fallout from U.S. tariffs.
For Indian policymakers and RBI watchers, the euro areaβs experience is a useful comparative benchmark. Persistent inflation expectations, even at modest levels signal risks to inflation anchoring. The need for the RBI to maintain vigilance and guard against unmoored expectations is especially relevant as India navigates global volatility and rising rural consumption.
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https://www.ecb.europa.eu/press/pr/date/2025/html/ecb.pr250829~2cdd51374f.en.html