According to May ECB Consumer Expectations Survey, consumers are indicating a slight easing in their inflation expectations for the near and medium term, while growth expectations stay largely cautious.
In detail, mean inflation expectations for one year ahead in May stood at 5.1%, dipping from 5.3% in April and significantly lower than March’s 6.3%. Median inflation expectations for the same period also saw a decline, registering at 3.9% in May, compared to 4.1% in April and 5.0% in March.
Furthermore, consumers’ mean inflation expectations for three years ahead were at 4.0% in May, a slight increase from April’s 3.8%, yet still lower than March’s 4.3%. The median inflation expectations for the same term remained steady at 2.5% for both May and April, below March’s 2.9%.
On the growth front, mean expectations for economic expansion over the next 12 months saw a slight uptick, registering at -0.7% in May, compared to -0.8% in April and -1.0% in March. Meanwhile, the median economic growth expectation for the next 12 months held steady at 0% for May, unchanged from April and March.
