Euro Zone Consumers Trim Inflation Expectations

Consumers in the Euro zone have lowered their expectations for inflation, according to a recent poll by the European Central Bank. The median respondent in the ECB's Consumer Expectations Survey predicted inflation over the next 12 months at 3.0% in June, down from 3.5% in May. This decline is likely due to the short-lived truce in the Middle East that led to lower energy prices.

The survey also showed a decrease in expectations for inflation three years ahead, to 2.8%, and no change in the view five years ahead at 2.4%. These figures suggest that consumers are becoming less concerned about future price increases.