US consumers’ inflation expectations for one year from now dropped in April, but their outlook of inflation over the medium term rose, and household spending expectations surged.
Source: Federal Reserve Bank of New York
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Median expectations for where inflation will be in one year dropped 0.3 percentage points to 6.3%, while they rose to 3.9%, an increase of 0.2 percentage points, over a three-year projection.
Despite a recent fall in the US stock market, consumers also have renewed optimism about its near-term gains.
New York Fed survey points out that consumers see short-term relief in some areas over the upcoming year, with inflation expectations for gas prices declining 4.4 percentage points to 5.2% and food and medical costs sliding 0.2 percentage points to 9.4%.
Median home prices expectations remained unchanged at 6.0%, and the expected increase in rent jumped to a record high.