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flag Eurozone inflation expectations rose in August, with consumers projecting higher prices and joblessness, while the ECB held rates steady amid conflicting economic signals.

flag Eurozone consumers raised their 12-month inflation expectations to 2.8% in August from 2.6% in July, while five-year expectations hit 2.2%, the highest since August 2022. flag Three-year expectations remained steady at 2.5%. flag Consumers also increased their nominal income growth outlook to 1.1% from 0.9%, though spending and growth expectations stayed flat at 3.3% and -1.2% respectively. flag Unemployment expectations rose slightly to 10.7%, with lower-income households anticipating higher joblessness. flag The European Central Bank held rates steady after two percentage point cuts by June, as policymakers debate whether weak growth and a strong euro warrant further easing or if persistent inflation pressures justify maintaining current rates. flag The survey included 19,000 adults across 11 euro zone countries.

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