The New York Fed’s survey shows inflation expectations remained nearly unchanged, easing slightly from June’s 3.7% reading.
US consumers’ one-year inflation expectations edged down to 3.6% in July from 3.7% in June, while three- and five-year outlooks stayed at 3.3% and 3.0%, respectively. The data suggests households see persistent price pressures despite recent volatility in energy markets tied to geopolitical tensions.
Inflation remains above the Federal Reserve’s 2% target, keeping policymakers in active debate over potential rate hikes. Expectations for gasoline prices and home price growth held steady, while households reported improved financial outlooks despite tighter current credit conditions.
The survey also indicated rising concerns over future unemployment and job security, though the likelihood of finding a new job improved slightly from June.