Europeans in the Eurozone can finally breathe a sigh of relief — inflation is dropping! According to the latest European Central Bank survey, average inflation over the next 12 months is expected to be 2.8%, down from 3.1% in April. But don’t pop the champagne just yet — your incomes are only expected to rise by 1%, meaning money is still leaving your pockets faster than it’s coming in. Inflation expectations for the next three years also dipped slightly from 2.5% to 2.4%, while five-year forecasts remained steady at 2.1%. Consumers are also a bit more optimistic about the Eurozone’s economic contraction, now expecting a 1.1% decline, better than the 1.9% predicted in April. The survey covered about 19,000 adults across 11 Eurozone countries, including Germany, France, Italy, and Spain. However, despite falling inflation, real wage growth is lagging far behind, meaning the average European is still losing purchasing power. Is this the beginning of the end of the inflation crisis or just a temporary breather? We’re waiting for July’s results for a clearer picture. So, how long are you willing to wait for your wages to catch up with inflation? Drop a comment and let’s hear your take!
