Americans' anxiety about the future path of inflation eased in May, as they also grew more upbeat about the state of their personal finances, according to a report released on Monday by the New York Federal Reserve.

The New York Fed's Survey of Consumer Expectations showed the one-year inflation outlook took a substantial dip in May, down to 3.2% — a 0.4 percentage point decrease from April. While the survey showed inflation expectations are still above the Fed's 2% annual target,

Consumers expect lower inflation over the next year than they did a month ago, the New York Federal Reserve found in its latest survey. Over the next 12 months, consumers expect prices to rise 3.2%, down by 0.