New York, August 12 (FFN) – Inflation expectations among American consumers remained nearly unchanged in July, according to a survey released on Monday by the Federal Reserve Bank of New York. The report, based on information from CNBC and Bloomberg, indicates that while consumers expect inflation to remain elevated over the next year, they anticipate a decline over the coming years.
Specifically, the survey showed that one-year inflation expectations among U.S. consumers remained steady at 3% in July, the same level as in June. Similarly, five-year inflation expectations were unchanged, holding steady at 2.8%. However, three-year inflation expectations decreased by 0.6 percentage points to 2.3%.
Regarding the labor market, respondents in the survey predicted slower wage growth and greater difficulties in finding new employment. The median year-ahead expected wage growth dropped by 0.3 percentage points to 2.7%.
Here’s a summary of the key findings:
| Indicator | June 2023 | July 2023 | Change |
|---|---|---|---|
| One-Year Inflation Expectations | 3.0% | 3.0% | 0.0 pp |
| Three-Year Inflation Expectations | 2.9% | 2.3% | -0.6 pp |
| Five-Year Inflation Expectations | 2.8% | 2.8% | 0.0 pp |
| Median Expected Wage Growth | 3.0% | 2.7% | -0.3 pp |
