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Investing.com – Americans said last month that they expect inflation to decline over the next few years, according to a survey recently released by the New York Federal Reserve.
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In its latest survey of consumer expectations, the Federal Reserve Bank of New York reported that respondents said that inflation a year from now is likely to stand at 3.5% compared to a forecast of 3.8% in June. The new reading is the lowest since April 2021. The New York Federal Reserve said its three- and five-year forecasts fell to 2.9% from 3%.
Expected declines in future inflation rates occurred amid moderation in price pressures in a number of key categories. The New York Fed said that in July the public expected lower inflation rates for gasoline, food, medical costs and rent costs. Meanwhile, the expected rise in home prices rose to 2.8% in July from 2.9% in June.
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The New York Fed released its report amid a slowdown in key inflation measures. The moderation in inflation data has raised questions about whether the US central bank will need to raise interest rates again after raising them by a quarter of a percentage point to a range of 5.25%-5.50% at last month’s monetary policy meeting.
Moderation in expected inflation is likely to be seen as positive for expectations on price pressures, as policy makers view the expected path of inflation as strongly influencing their stance on rate-setting today.
2023-08-14 15:16:00
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