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Eurozone Consumer Inflation Expectations Down in May

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The median rate of perceived inflation by euro area consumers for the year ahead decreased month over month in May, according to a European Central Bank survey published Friday.

The latest monthly ECB Consumer Expectations Survey showed that median expectations for inflation in the next 12 months fell to 3.5% in May from 4% in April. The estimate for the next three years remained at 2.9%, while the expectation for five years ahead held steady at 2.4%.

Meanwhile, the uncertainty about inflation expectations for the next 12 months declined but stayed at an elevated level compared with before the start of the Middle East conflict.

The ECB continued to see lower inflation expectations among younger survey respondents aged between 18 and 34 years versus those aged 35 to 54 and 55 to 70.

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