MNI BRIEF: EZ Inflation Expectations Dip In May - ECB Survey
Eurozone inflation expectations for the coming year edged lower in May, slipping to a near three-year low at 2.8% from 2.9% in April, the ECB's Consumer Expectations Survey showed.
They are now at their lowest level since September 2021.
Median expectations for inflation three years ahead also edged down, to 2.3% from 2.4% in April. Inflation expectations at the one-year and three-year horizons remained below the perceived past inflation rate -- which slipped to 4.9% from 5.0% in April.
The ECB's Governing Council continues to set policy to return inflation to the 2% target, with projections currently seeing a sustainable return by H2 2025. In May, headline inflation stood at 2.6% -- the flash June data is set for release on July 2 (see MNI SOURCES: September Rate Cut In Sight For ECB)