2023-08-14 16:27:00
U.S. consumers’ short-term inflation expectations fell for the fourth straight month in July and to their lowest since April 2021, according to a New York Fed survey.
Median one-year inflation expectations fell to 3.5% in July from 3.8% in the previous month, according to a survey released on Wednesday. Inflation expectations in 3 years and 5 years are both 2.9%. It was down slightly from the previous month’s 3%.
Improvements in the short-term inflation outlook were seen “broadly” across all sectors, with essential living costs such as food, health care and rent expected to rise more modestly over the next year.
Optimism regarding households and the labor market also increased, according to the survey. Respondents said they were less worried regarding losing their jobs and were less likely to see the unemployment rate a year from now. The percentage of respondents who think they can find a new job even if they lose their job has also increased.
Inflation Expectations Fall
Consumers see lower inflation at one-year, three-year and five-year horizons
Source: Survey of Consumer Expectations, Federal Reserve Bank of New York
Original title:Near-Term Inflation Outlook at Lowest Since 2021 in Fed Survey
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