ECB Survey Shows Rising Inflation and Growth Fears

The European Central Bank reported in its September 2026 Consumer Expectations Survey that consumers have raised their one-year inflation expectations to 3.1%, an increase from 3% in August. While longer-term expectations for three and five years remained stable at 2.9% and 2.5% respectively, the outlook for economic growth deteriorated.

Consumers now expect the economy to shrink by 1.5% over the next 12 months, while expected unemployment for the coming year rose to 11.3%. The survey revealed significant disparities based on income, with the lowest-income fifth of respondents reporting higher perceived and expected inflation and unemployment than the highest-income fifth.

Despite these economic concerns, consumers reported an increase in spending over the previous year and anticipate further growth in spending and home values over the next year. However, respondents also noted that access to credit has become more difficult.