The New York
Fed reported on Monday that the U.S. consumer inflation expectations for the
year ahead increased to 3.3 per cent in April from
3.0 per cent in March. This marked the first gain in seven months and represented
the highest reading since November 2023 (3.4 per cent).
According
to the report, the anticipations about year-ahead price change for gas and food
increased by 0.3 percentage point and 0.2 percentage point, respectively, to 4.8 per
cent and 5.3 per
cent. At the same time, expectations for year-ahead changes in the cost of a
college education surged by 2.5 percentage points to 9.0 per cent, while the
perceptions of year-ahead change in the cost of medical care jumped by 0.6 percentage point to 8.7 per cent, and those for the cost of rent climbed by 0.4
percentage point to 9.1 per cent. Elsewhere, home price growth expectations jumped to 3.3 per cent - the highest
level since July 2022 - after remaining unchanged at 3.0 per cent for seven straight
months.
The report also revealed that the
three-year-ahead inflation expectations decreased to 2.8 per cent in April from 2.9 per cent in March, while the
five-year-ahead inflation expectations rose to 2.8 per cent from 2.6 per cent in the previous month.