NY Fed Survey: Year-ahead expected inflation drops

The Federal Reserve Bank of New York’s monthly Survey of Consumer Expectations showed on Monday that the US consumers’ one-year inflation expectation dropped to the lowest level since April 2021 at 3.5% in July from 3.8% in June.

The US Dollar Index showed no immediate reaction to this report and was last seen rising 0.3% on the day at 103.15.

Key Takeaways

“Three year-ahead expected inflation at 3% in July vs 2.9% in June.”

“Five-year ahead expected inflation at 3% in July vs 2.9% in June.”

“Survey finds retreating inflation expectations across a number of categories.”

“July expected home price rise moves to 2.8% from June’s 2.9%.”

“July expected rent price increase lowest since January 2021.”

“Survey respondents report better personal financial situations in July.”