site.btaConsumer Confidence Drops in July, Inflation Expectations Rise

In July 2025, the consumers continue to consider that over the last 12 months there has been an increase of the consumer prices. At the same time, their inflation expectations about the next 12 months have strengthened, as a result of which the balance indicator increases by 14.8 percentage points, according to data from a consumer survey published by the National Statistical Institute on Friday.

In comparison, in July 2024, consumers also perceived a rise in consumer prices over the previous 12 months, but at a slower pace than the assessments registered in April of the same year. Their inflation expectations for the following 12 months were also less pronounced.

The total consumer confidence indicator decreases by 4.7 percentage points in comparison with April (from -16.4% to -21.1%), which is due to the decreased confidence among both urban and rural inhabitants.

The present economic situation in the country is assessed by the majority of the consumers as unfavourable for saving. However, in July certain optimism (by 6.1 percentage points) in the total assessments of the present situation for making major purchases of durable goods is observed, as the consumers’ intensions to make such expenditures over the next 12 months are improved.

The consumers’ total assessment of the development of the economic situation in the country over the last 12 months and their expectations over the next 12 months, are deteriorated compared to the previous survey, as a result of which the balance indicators decrease by 4.6 and 10.6 percentage points, respectively. In comparison with 3 months earlier, their assessments and expectations about the changes in the financial situation of their households are also more negative.