Short-term inflation expectations continue to fall, according to the latest monthly consumer survey released Monday by the New York Fed.
The regional federal bank said in its December consumer expectations survey that consumers expected inflation to be 5% a year from now. It was down from 5.2% a month earlier and is the lowest level since July 2021.
In three years, consumers see inflation settling at a rate of 3%, unchanged from November.
The Fed closely monitors public opinion on the inflation outlook, as future inflation rates tend to reflect expectations.
According to the survey, consumer expectations for revenue growth rose 0.1 percentage point to 4.6%, a new high for the series.
Meanwhile, household spending growth expectations fell sharply to 5.9% in December from 6.9% the previous month.
Expectations for house price growth increased by 0.3 percentage point to 1.3%, but remained subdued compared to pre-pandemic levels.
