Economics
Consumers’ US Inflation Expectations Drop Across All Time Horizons
- Median one-year-ahead expectation fell to 6.2%; 3-year to 3.2%
- Shift in outlook comes after weeks of falling gasoline prices
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Consumer expectations for US inflation over the coming years declined sharply in the latest survey by the Federal Reserve Bank of New York, a finding that may ease the Fed’s concern about ever-rising prices getting baked-in to household behavior.
Expectations for US inflation three years ahead fell to 3.2% in July, from 3.6% the previous month, according to the New York Fed’s Survey of Consumer Expectations. It was the second straight monthly drop. The outlook for inflation in the coming year fell to 6.2% from 6.8%.