MNI BRIEF: U.S. Consumer Inflation Expectations Fall - NY Fed

U.S. consumer inflation expectations declined across the board in July while year-ahead price growth expectations for food, medical care and rent declined to their lowest levels in nearly three years, according to the Federal Reserve Bank of New York's monthly Survey of Consumer Expectations released Monday.

Median inflation expectations fell to 3.5% from 3.8% at the one-year-ahead horizon, its lowest since April 2021, and both the three-year and five-year-ahead inflation expectations edged down to 2.9% from 3.0%, the New York Fed said. Median year-ahead expected price changes also fell for all commodities, with readings for food, medical care and rent at their lowest since September 2020, November 2020 and January 2021, respectively, the bank said. (See: MNI INTERVIEW: Odds of Soft Landing Improved - Fed's Kliesen)