The New York
Fed reported on Thursday that the U.S. consumer inflation expectations for the
year ahead held steady at 3.6
per cent in April. This represents
the highest
level since October 2023 (3.6 per cent).
According
to the report, the anticipations about the year-ahead change in the cost of college
soared by 2.4 percentage points to 9.1 per cent, while those for rent gained 1.8 percentage points to
9.0 per cent. In addition, the perceptions of year-ahead change in the cost of
medical care advanced by 0.8 percentage point to 8.7 per cent, and those for
the price of gas increased by 0.3 percentage point to 3.5 per cent. At the same
time, the expectations for the year-ahead change in the price of food slipped by
0.1 percentage point to 5.1 per cent. Elsewhere, home price growth expectations rose by 0.3 percentage point to 3.3 per cent.
The report also revealed that the
three-year-ahead inflation expectations increased to 3.2 per cent in April from 3.0 per cent in March, hitting the highest level since July 202, and the five-year-ahead inflation expectations
decreased to 2.7 per cent from 2.9 per cent in the previous month.