The New York
Fed reported on Tuesday that the U.S. consumer inflation expectations for the
year ahead decreased to 2.9 per cent in October
from 3.0 per cent in September. This marked the first drop in four months and
represented the lowest reading since October 2020 (2.8 per
cent).
According
to the report, the anticipations about year-ahead change in the cost of medical
care declined by 0.8 percentage point to 5.8 per cent, the lowest level since
January 2020, while those for rent decreased 0.4 percentage point to 5.9 per
cent. The expectations for year-ahead changes in the cost of food, gas and college
education fell by 0.2 percentage point each to 4.3 per cent, 3.2 per cent and 5.7
per cent respectively. Elsewhere, home price growth expectations remained
unchanged at
3.0 per cent.
The
report also showed that the three-year-ahead inflation expectations fell to 2.5 per cent in October from 2.7 per cent in September, while the five-year-ahead inflation expectations slipped to 2.8
per cent from 2.9 per cent in the previous month.