The New York Fed reported that American consumers’ short-term inflation expectations fell to 3.8 percent in June, the lowest level since April 2021.
The New York Fed has released the results of its June Consumer Expectations Survey.
According to the results of the survey conducted with the participation of approximately 1,300 households, the short-term median inflation expectation covering the next 12 months decreased by 0.3 percentage points to 3.8 percent in June.
Short-term inflation expectation, which carried its decline to the third month, recorded its lowest level since April 2021. In this period, short-term inflation expectation decreased by 3 points from the 6.8 percent peak recorded in June 2022.
The medium-term inflation expectation covering the next 3-year period remained unchanged at 3 percent in June.
In the same period, the long-term inflation expectation covering the next 5-year period increased by 0.3 percentage points, reaching the highest level recorded since March 2022 with 3 percent.
Expectations for a rise in household spending fell from 5.6 percent to 5.2 percent in June, the lowest level since September 2021. The expectation for an increase in household income decreased by 0.1 percentage points to 3.2 percent in June.
Expectations for housing price increase in this period rose from 2.6 percent to 2.9 percent, reaching the highest level since July 2022. Expectations of price increases decreased in gasoline and food costs, while university education, health and rent costs increased.