Euro Zone Consumers Cut Inflation Expectations Amid Short-Lived Energy Price Relief

The European Central Bank (ECB) has released its Consumer Expectations Survey for June, revealing that euro zone consumers have cut their inflation expectations. The survey found that the median respondent expects inflation over the next 12 months to be 3.0%, down from 3.5% in May. This decrease is likely due to a short-lived truce in the Middle East that led to lower energy prices.

The poll also showed that expectations for inflation three years ahead declined to 2.8% from 2.9%. However, the view five years ahead remained unchanged at 2.4%.