NY Fed Survey: U.S. Consumers' Inflation Expectations Complex, Household Finances Mixed

According to the results of a survey released Monday by the New York Federal Reserve, in December, U.S. consumers for the path of inflation is expected to show a complex situation, at the same time, they are on the ability of the family to pay off their debts significantly increased concerns. In its latest survey of consumer expectations, the New York Fed noted that respondents expect inflation to remain at 3 percent a year from now. Notably, expectations for price pressures after three years climbed to 3% from 2.6% in November, while expectations for price pressures after five years fell to 2.7% from 2.9% in November. In addition, the survey revealed that uncertainty about the inflation outlook rose in the one- and three-year forecasts, though it fell in the five-year forecast. In terms of price expectations by category, the survey revealed that food prices are expected to rise, however other key categories are expected to decline, with gasoline price expectations hitting their lowest level since September 2022. House prices are expected to rise at 3.1%. Not only that, but the New York Fed survey also found that households' views of their financial situation are equally mixed. Although more respondents were optimistic about their personal finances, they also said they expected smaller increases in income and earnings in the future. Meanwhile, consumers' views on the outlook for the job market were also mixed.