MNI BRIEF: 3-Yr Inflation Expectations Lowest On Record-NY Fed
Inflation expectations in January remained unchanged at the short- and longer-term horizons and declined slightly at the medium-term horizon , according to a New York Fed's survey of consumers, while consumers were more optimistic about their financial situation.
Median year-ahead inflation expectations were unchanged at 3.00%, while the five-year-ahead measure was unchanged at 2.54%. The three-year-ahead measure decreased 0.2ppt to 2.35%, the lowest since the New York Fed’s Survey of Consumer Expectations started in 2013. (See: MNI INTERVIEW: Hot US Economy Complicates Fed Cut Calculus)
The percentage of respondents expecting to be financially the same or better off 12 months from now is 76.5%, its highest level since September 2021.
Source: New York Fed