Euro-area consumers lowered their inflation expectations in May, according to the European Central Bank’s monthly consumer expectations survey. The median one-year outlook for consumer prices fell to 2.8%, down from 3.1% in April and below the 3.1% consensus estimate compiled by Bloomberg. Expectations for inflation three years ahead also eased, slipping to 2.4% from 2.5% and undershooting economists’ forecast of 2.5%. The retreat in price expectations follows the ECB’s first interest-rate cut of the current cycle in early June and will be closely watched by policymakers as they assess the durability of disinflation across the 20-nation currency bloc.