The New York
Fed reported on Monday that the U.S. consumer inflation expectations for the
year ahead remained unchanged at 3.0
per cent in December 2024 compared to November 2024.
According
to the report, the anticipations about year-ahead change in the cost of college
education dropped by 1.0 percentage point to 5.7 per cent, while those for gas declined
0.7 percentage point to 2.0 per cent, the lowest reading since September 2022. The
expectations for year-ahead changes in the cost of medical care and rent decreased
by 0.2 percentage point each to 5.8 per cent and 5.5 per cent respectively. Meanwhile,
the perceptions of year-ahead change in the prices for food increased by 0.2
percentage point to 4.0 per cent. Elsewhere, home price growth expectations edged up to 0.1 percentage point to 3.1 per cent.
The report also showed that the three-year-ahead
inflation expectations jumped to 3.0 per cent in December from 2.6 per cent in November,
while the five-year-ahead inflation expectations fell to 2.7
per cent from 2.9 per cent in the previous month.