Eurozone Consumers Turn More Pessimistic as Inflation Fears Surge

A new survey by the European Central Bank shows growing concern among eurozone consumers, with inflation perceptions and expectations rising sharply in March 2026. Median perceived inflation over the past year climbed to 3.5% from 3.0%. Expectations for the next 12 months jumped to 4.0% from 2.5%, while three-year expectations rose to 3.0%. Five-year expectations edged up to 2.4%. At the same time, income growth expectations held steady at 1.2%, but expected spending increased to 4.1%. Consumers also turned more negative on the economy, with growth expectations dropping to -2.1% from -0.9%. Unemployment expectations rose to 11.3%, above the current 10.6%. Housing expectations increased slightly to 3.7%, while mortgage rate expectations climbed to 4.9%. Credit access is also expected to tighten further.