New York Fed survey shows median one-year inflation outlook rose to 3.7%, driven by healthcare and rent cost concerns.
US consumers expect inflation to accelerate, with median one-year expectations climbing to 3.7% in June, the highest since September 2023. The New York Fed’s survey also revealed a three-year outlook of 3.3%, the steepest since mid-2022 when inflation peaked at 9.1%.
Expectations for healthcare costs surged 9.4% over the next year, while rent growth forecasts reached 8.3%. Gas price expectations fell to their lowest since August 2022, contrasting with broader inflation concerns. Current rental prices average $2,014 nationally, though some markets like Chicago face year-over-year increases.
The data underscores persistent inflation fears despite cooling in some sectors, with wage growth failing to keep pace amid rising costs.