- Annual inflation expectations among U.S. consumers stayed at 3% in August, unchanged from July and June.
- Five-year inflation expectations remained stable at 2.8%, while three-year expectations slightly rose to 2.5% from 2.3%.
- The median expected income growth increased to 2.9%, slightly above the 12-month average.
New York, 9 September (FinanceFlashNews) – U.S. households’ expectations for inflation remained largely unchanged in August, according to a survey by the Federal Reserve Bank of New York, as inflationary pressures continued to ease. The Survey of Consumer Expectations (SCE) showed that annual inflation expectations held steady at 3% for the third consecutive month.
Additionally, five-year inflation expectations also remained unchanged at 2.8%, while three-year expectations saw a modest rise to 2.5% from 2.3% in July.
The survey revealed an uptick in the median expected income growth, which rose to 2.9% from 2.7%, slightly above the 12-month average of 2.8%. Home prices are also expected to grow, with estimates rising to 3.1% from 3% in July.
Consumer expectations for the future showed rising prices for gasoline, rent, and healthcare, while expectations for food prices and college tuition costs saw a decline.
| Indicator | August 2024 | July 2024 | June 2024 |
|---|---|---|---|
| Annual Inflation Expectations | 3.0% | 3.0% | 3.0% |
| Five-year Inflation Expectations | 2.8% | 2.8% | 2.8% |
| Three-year Inflation Expectations | 2.5% | 2.3% | 2.3% |
| Expected Income Growth | 2.9% | 2.7% | 2.7% |
| Expected Home Price Growth | 3.1% | 3.0% | – |
Keywords: inflation expectations, Federal Reserve, consumer spending, income growth, housing market
