NY Fed: Year-ahead expected inflation drops to 3%, lowest level since January 2021
|The Federal Reserve Bank of New York's latest Survey of Consumer Expectations showed on Monday that the US consumers' one-year inflation expectation dropped to its lowest level since January 2021 at 3% in December from 3.4% in November.
Key takeaways
"Expected inflation three years ahead at 2.6% in December vs 3% in November."
"Expected inflation five years ahead at 2.5% in December vs 2.7% in November."
"Median expected home price rise unchanged at 3% in December."
"Expected earnings, spending rises at lowest level since 2021."
"Households less pessimistic on credit access, financial situation."
Market reaction
The US Dollar (USD) stays under modest selling pressure following this report. At the time of press, the USD Index was down 0.3% on the day at 102.12.
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