Economic Buzz: NY Fed Consumer Expectations Survey Indicate Fall In Inflation Expectations

9 Aug 2022 , 09:05 AM

The New York Fed released its latest Consumer Expectations survey which showed a record drop in short-, medium- and longer-term inflation expectations: specifically, inflation expectations at the 1-year horizon decreased to 6.22% in July – the lowest since February – from the previous months 6.78%, the biggest monthly drop on record as expectations about year-ahead price increases for gas and food fell sharply. At the same time, median three-year-ahead inflation expectations also declined, from 3.62% to 3.18%, lowest since April 2021. Finally, the median five-year ahead inflation expectations, surveyed intermittently since the beginning of this year, fell from 2.8% to 2.3%. After being stable at 3.0% during the first three months of the year, the series has been trending down since. Over the next year consumers expect gasoline prices to rise 1.46%; food prices to rise 6.66%; medical costs to rise 9.2%; the price of a college education to rise 8.43%; rent prices to rise 9.91%Powered by Commodity Insights