MNI BRIEF: Consumer Inflation Expectations Slide In May - ECB

Eurozone consumer inflation expectations slowed sharply in May, reversing the increase of the early months of 2025, a survey published by the European Central Bank showed on Tuesday.

Median expectations for inflation over the next 12 months decreased by 0.3 percentage points to 2.8%, while expectations for three years ahead also decreased, slowing by 0.1 percentage points. The ECB's newer 5-year outlook was unchanged at 2.1%, providing further ammunition for ECB officials arguing that the inflation outlook has normalised as expectations remain firmly anchored.

ECB policymakers meet for their annual forum in Sintra, Portugal from Tuesday and the inflation outlook will be lower down the list of concerns compared to recent years,  with many believing the battle with high price rises is all but won.