U. S. consumer is not worried about inflation
2023.01.09 12:42
U. S. consumer is not worried about inflation
By Tiffany Smith
Budrigannews.com – In the most recent survey conducted by the Federal Reserve Bank of New York, consumer expectations for inflation in the United States in one year decreased slightly.
In December, the median one-year-ahead inflation expectations fell to 5%, the lowest level since July 2021. The New York Fed’s Survey of Consumer Expectations found that consumers’ expectations for inflation three years from now were unchanged at 3%.
Younger respondents’ higher price expectations contributed to a slight increase in longer-term inflation expectations. Inflation expectations for the next five years averaged 2.4%, up 0.1 percentage points.
The expectations for US year-ahead inflation for gasoline and food, two of the most commonly used goods, decreased by 0.7 percentage point. Food price expectations one year in advance decreased to 7.6%.
The recent drop in the cost of gasoline was a major factor in easing household concerns. Consumers now anticipate a 4.1% increase in gasoline prices over the next year, down from 10% in March, according to the New York Fed survey. Regular gasoline is now $3.28 per gallon, down from more than $5 in June.
On Thursday, the consumer price index reading for December will be made available by the Labor Department. Bloomberg polled economists and found that the annual rate will continue to fall while the CPI will remain the same month over month.
According to the New York Fed, expectations for rental price increases in the upcoming year decreased to 9.6%, a 21-month low. It uses a rotating sample of roughly 1,300 households as the basis for its online poll.
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Additionally released on Monday, a separate Fannie Mae survey projects a 5.5% increase in rents and a 1.6% decrease in home prices. Respondents have predicted a decline in home prices for the fifth month in a row.
