New York Fed consumer survey raises 1 year inflation expectations to 3.4% from 3.2%

Central Banks

The New York Fed is out with its survey of consumer expectations for the current month :

  • September one-year ahead expected inflation 3.4% vs. August’s 3.2%

  • September three-year ahead expected inflation unchanged at 3%

  • September five-year ahead expected inflation 3% vs. August’s 2.9%

  • September labor market expectations lost ground

  • September year-ahead expected food price rise highest since March 2023

  • September household spending expectations cooled

  • In September, households upgraded view on personal finances

  • In September, households marked down future financial situation expectations

Households showed a mixed outlook. They marked down their expectations for future financial situations but upgraded their view of current personal finances. Spending expectations cooled, and labor market expectations weakened, while year-ahead food price expectations rose to their highest level since March 2023. Inflation expectations were higher: one-year ahead ticked up to 3.4% from 3.2%, three-year ahead held steady at 3%, and five-year ahead inched higher to 3% from 2.9%.

Overall, this report reflects a slightly weaker tone, as labor and spending expectations softened despite marginally higher inflation expectations and a modest improvement in current personal finance views.

For the full report click here

This article was written by Greg Michalowski at investinglive.com.

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