Consumer inflation drop to 4.1% in July – ECB

The European Central Bank (ECB) reported a noticeable decline in consumers’ perceptions of inflation over the past 12 months, with the median rate dropping to 4.1 per cent in July from 4.5 per cent in June.

Despite this decrease, inflation expectations for the next 12 months remained steady at 2.8 per cent for the third consecutive month, marking their lowest level since September 2021.

Meanwhile, expectations for inflation three years ahead inched up slightly by 0.1 per cent to 2.4 per cent.

The survey also highlighted that younger respondents (aged 18–34) continue to report lower inflation perceptions and expectations compared to older age groups.

Uncertainty around short-term inflation expectations stayed at its lowest level since the onset of the Ukraine crisis in February 2022.

Attribution: The European Central Bank’s (ECB)

Subediting: M. S. Salama