Consumers Expect a Rise In Medium-Term inflation
Consumers’ inflation expectations held for one-year, but rose for the three-year horizon, according to the September Survey of Consumer Expectations, released by the Federal Reserve Bank of New York on Tuesday.
“In particular, expectations about earnings, spending, income growth, home prices, financial situations and the stock market all deteriorated,” the survey noted.
Median inflation expectations held at 2.5% in September for a one-year period and grew to 2.8% from 2.5% for a threeyear horizon.
Turning to labor, the expectation for oneyear earnings gains fell to 2.3% from 2.5%. The mean probability of losing one’s job in the next 12 months held at 13.8%, while the mean perceived probability of leaving one’s job voluntarily in the next 12 months fell to 20.6% from 21.7%.