The New York
Fed announced on Monday that the U.S. consumer inflation expectations for the
year ahead decreased to 3.0 per cent in June from
3.2 per cent in May. This marked the lowest
reading since March (3.0 per cent).
According
to the report, the anticipations about year-ahead price change for the cost of
a college education plunged by 3.1 percentage points to 5.3 per cent, the
series’ lowest level since December 2020, while the perceptions of year-ahead
change in the cost of rent declined by 2.6 per cent point to 6.5 per cent, and those for the cost of medical
care dropped by 1.7 percentage points to 7.4 per cent. In addition, the expectations
for year-ahead changes in gas price and food fell by 0.5 percentage point to 4.3 per cent and
4.8 per
cent respectively. Elsewhere, home price growth expectations declined
by 0.3 percentage point to 3.0 per cent, back to the series 12-month trailing average.
The
report also revealed that the three-year-ahead inflation expectations rose to 2.9 per cent in June from 2.8
per cent in May, while the five-year-ahead inflation expectations fell to 2.8 per
cent from 3.0 per cent in the
previous month.