Fed Survey: Consumers See Food Prices Declining
Consumers’ inflation expectations held for three-year, but rose for the one-year horizon, according to the October Survey of Consumer Expectations, released by the Federal Reserve Bank of New York on Monday.
“While inflation expectations were relatively stable, year-ahead expectations of food price changes reached their lowest value since the start of our survey in June 2013,” the survey noted.
Median inflation expectations grew to 2.6% in October from 2.5% in September for a one-year period and held at 2.8% for a three-year horizon. Turning to labor, the expected earnings growth for one-year slid to 2.1% from 2.3%.