Eurozone Inflation Expectations Fall Amid Less Uncertainty - ECB Survey

(RTTNews) - Euro area consumer inflation expectations for the short and medium term eased in May as uncertainty over the economic outlook decreased, monthly survey data from the European Central Bank showed on Tuesday. Median expectations for inflation over the next 12 months fell 0.3 percentage points to 2.8 percent and the outlook for three years ahead eased by 0.1 percentage points to 2.4 percent, the monthly ECB Consumer Expectations Survey revealed.

Meanwhile, expectations for inflation over the next five years were unchanged at 2.1 percent for the sixth month in a row, the ECB said.

Uncertainty over the inflation outlook for the next 12 months decreased in May, reversing the increase observed in April, the survey showed. The ECB survey also found that income growth expectations for the next 12 months increased, while spending growth hopes decreased. Eurozone consumers were also less pessimistic regarding the economic growth in one year and the expected unemployment rate dropped.

House price growth expectations for the one year ahead were unchanged, while mortgage interest rate expectations eased.