Eurozone 12-month inflation expectations for July fall to 2.9%, marking the third consecutive monthly decline

(1) The median expectation of eurozone consumers for price increases over the next 12 months fell from 3.0% in June to 2.9%, marking the third consecutive monthly decline; the three-year inflation expectation dropped from 2.8% to 2.7%, while the five-year expectation remained unchanged at 2.4%. However, short-term inflation expectation uncertainty remains higher than before the Middle East conflict. (2) Low-income households continue to perceive and expect higher inflation compared to high-income groups, and younger consumers expect more moderate inflation than older ones. The expected nominal income growth for the coming year edged down to 1%, and the expected spending growth held steady at 3.6%. Consumers' pessimism about economic activity has slightly eased, with expected growth improving from -1.4% to -1.2%. (3) Low-income households have stronger expectations for house price growth, averaging 4%, while the highest-income group expects 3.1%.