MNI BRIEF: Inflation Expectations Growth Cools - NY Fed

The New York Fed's median measure of one-year-ahead consumer inflation expectations was unchanged at 6.0% in December, the first time with no monthly increase since October 2020.

Median inflation expectations three years ahead were unchanged at 4.0% after dipping in November by 0.2 ppts, the New York Fed said. Expectations about year-ahead price changes fell by 3.5 ppts for the price of gas to 5.7%, 1.4 ppts for food prices to 7.8%, and 1.0 ppt for the cost of a college education to 8.1%. The median expected change in the price of medical care and rent remained unchanged at 9.6% and 10.0%.

Median home price expectations increased to 5.5% from 5.0% in November, but remained below their May 2021 peak. The median expected growth in household income increased by 0.2 percentage point to 3.4% in December, a new series high.