Near-term inflation expectations declined in June while Americans reported greater confidence about their finances and job prospects, according to a new report from the Federal Reserve Bank of New York.
The New York Fed’s Survey of Consumer Expectations, released on July 8, showed median inflation expectations fell by 0.2 percentage point to 3.0 percent for the year ahead. Expectations for inflation three years out remained at 3.0 percent, while five-year expectations held at 2.6 percent.
Uncertainty about future inflation also dropped at the one- and three-year horizons, though it stayed steady at the five-year mark. This decline in uncertainty suggests that consumers feel steadier about near-term price trends, which could help stabilize household spending and financial planning….