US short-term inflation expectations at two-year lows
Consumers are increasingly optimistic that inflation is coming down, according to a survey released yesterday by the New York Fed.
The New York Fed’s May Survey of Consumer Expectations showed Americans’ one-year inflation expectations fell 0.3 percentage points to 4.1 percent. Consequently, the inflation expectation for the next 12 months in the US fell to the lowest level since May 2021.
INCREASED LONG-TERM EXPECTATIONS
Price increases are still above the Fed’s 2 percent inflation target, according to the survey. On the other hand, long-term median inflation expectations also increased. The participants raised their inflation expectations in the next three years from 2.9 percent to 3.0 percent. The 5-year inflation expectation also increased from 2.6 percent to 2.7 percent.
According to the survey, salary expectations have also decreased. Expected one-year earnings growth fell 0.2 percentage point from April to 2.8 percent, in line with the broad range since September 2021.
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
