ECB Survey: Consumer Inflation Expectations Continue to Fall

For ECB officials, this will take the pressure off the ECB’s consumer survey, which showed consumers’ expectations for euro zone inflation continued to decline in May, continuing a sharp decline in the previous month.
Consumer expectations for inflation in the euro zone over the next 12 months fell to 3.9 percent from 4.1 percent in April. However, inflation expectations for the next three years remained at 2.5%, still above the ECB’s 2% target.
Previous data showed that the overall CPI growth in the euro zone slowed down, mainly due to the decline in energy costs; while the focus of policymakers’ current focus, that is, the core inflation rate accelerated again.
Bundesbank President Joachim Nagel said earlier on Wednesday that while the ECB had not yet reached the end of its tightening path, it “could not yet answer the question of how much further rate hikes are needed”.