US consumers’ short-term inflation expectations held steady

The New York Fed released the results of its January Consumer Expectations Survey.

According to the results of the survey carried out with the participation of approximately 1,300 households, the median short-term inflation expectation for the next 12 months remained unchanged in January, registered at 5 percent.

UP TO 2 PERCENT

The medium-term inflation expectation for the next 3 years fell 0.2 points to 2.7 percent in said period.

In the same period, the long-term inflation expectation for the next five years increased 0.1 percentage points to 2.5 percent.

The expectation of an increase in household spending decreased from 5.9 percent to 5.7 percent in January, taking its fall to the third month.

The expectation of an increase in household income, which has increased month by month since September of last year, decreased from 4.6 percent to 3.3 percent in January.

TO THE LOWEST LEVEL

In this period, the expected increase in house prices decreased 0.2 points to 1.1 percent, the second lowest level recorded since May 2020.

While food and energy costs were expected to rise in the same period, expectations regarding rising rental and healthcare costs remained flat.

IT WILL BE ANNOUNCED TOMORROW

According to data released last month in the US, the Consumer Price Index (CPI) decreased 0.1% per month in December 2022 and increased 6.5% per year. Thus, in December of last year, negative monthly inflation was registered for the first time since May 2020.

In said period, the decrease in energy prices had an impact on the monthly decrease in inflation.

The market’s expectation for inflation in January, which will be announced tomorrow, is for an increase of 0.5 percent monthly and 6.2 percent annually. (AA)