ECB Consumer Expectations Survey Shows Inflation Rise in October

The European Central Bank's (ECB) Consumer Expectations Survey for October 2025 shows median inflation expectations for the next 12 months increased slightly to 2.8%, up from 2.7% in September. Perceived inflation over the previous 12 months stayed unchanged at 3.1%, while expectations for inflation three years ahead and five years ahead were unchanged at 2.5% and 2.2%, respectively. Consumers' nominal income growth expectations rose to 1.2% in October, while expected spending growth held steady at 3.5%. Economic growth expectations became less negative, rising to -1.1%, and unemployment rate expectations increased to 11.0%. Home price growth expectation remained stable, with home prices projected to rise 3.5% over the next 12 months. Housing expectations remained stable, with home prices projected to rise 3.5% over the next year. Expectations for mortgage interest rates increased for a second month to 4.7%.