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MNI BRIEF: EZ Consumer Inflation Expectations Dip Again

(MNI) LONDON
(MNI) London

Eurozone consumer price expectations slowed again in May, the latest ECB survey shows, dipping to 3.9% from 4.1% in the previous month, although the outlook for inflation three years ahead remained stable at 2.5%.

Uncertainty about inflation expectations for the coming year fell to its lowest level since March 2022, although remains above levels observed prior to this. Inflation expectations remained well below the perceived past inflation rate, particularly at the three-year horizon, the Consumer Expectations survey showed. Inflation perceptions and expectations were again closely aligned across income classes,

Consumers saw nominal income increasing by 1.2% over the next 12 months, compared with 1.1% in April, while Perceptions of nominal spending growth over the next 12 months decreased further to 3.5%, from 3.8% in April and 4.1% in March.

The ECB Governing Council continues to monitor both inflation expectations and wage growth in their policymaking decision, so will be closely eyeing the outcome of the May survey.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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