Consumer inflation expectations in the Eurozone held steady in June, according to the European Central Bank (ECB). Survey data shows that consumers anticipate a 2.8% price increase over the next 12 months, unchanged from previous months and maintaining the lowest level since September 2021.

Expectations for inflation over the next three years also remained stable at 2.3%, as revealed by the ECB's monthly Consumer Expectations Survey, which polls approximately 19,000 individuals across eleven countries.

These expectations are crucial for the ECB's monetary policy. Recently, actual inflation in the Eurozone has been decreasing, reaching 2.5% in June, edging closer to the ECB's medium-term target of 2%.

In June, the ECB cut key interest rates for the first time since the significant inflation surge, but kept rates unchanged in July. Financial markets largely anticipate another rate cut in September.