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MNI BRIEF: NY Fed: Year Ahead Price Expectations Fall To 4.2%

U.S. consumer expectations for inflation a year from now fell eight tenths to 4.2% in February, according to the latest New York Fed survey, while expectations at the three-year horizon were unchanged at 2.7% and at the five-year horizon increased a tenth to 2.6%.

"Expectations about year-ahead price increases for gas, food, cost of rent, college education, and medical care all declined," the Fed bank said. Consumers' year-ahead inflation expectations are now the lowest since May 2021.

(See: MNI INTERVIEW- Fed Will Hike Rates To 6% Or Moreā€“Gorodnichenko)

Labor market expectations improved, with unemployment expectations and perceived job loss risk decreasing and job finding expectations increasing, the Fed bank said. "Expectations for voluntary job quits reached the highest level since the start of the pandemic."

Source: New York Fed

MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com

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