Public's inflation outlook changes little in May

The U.S. public's inflation outlook was little changed in May despite the strong upward pressure on prices resulting from the war in the Middle East, a survey released by the New York Federal Reserve showed on Monday.

Inflation a year from now was expected to be 3.5% versus 3.6% in April, while respondents saw inflation three years and five years from now at 3.1% and 3.0%, respectively.

While the projected path of price pressures was little changed in May, the regional Fed bank's survey found that uncertainty over future inflation rose over nearterm measures, amid rising anxiety about the current and future state of personal finances.

The relative calm in inflation expectations will likely cheer U.S. central bank officials as they prepare for their June 16-17 policy meeting. The Fed is expected to leave its benchmark interest rate in the 3.50%-3.75% range at that meeting, as officials wait for more data on the economic impact of the U.S.-backed war with Iran.