The New York
Fed announced on Monday that the U.S. consumer inflation expectations for the
year ahead decreased to 3.2 per cent in May from
3.6 per cent in April. This marked the first drop in seven months and represented
the lowest reading since February (3.1 per cent).
According
to the report, the anticipations about the year-ahead change in the cost of college
tumbled by 1.6 percentage points to 7.5 per cent, while those for the cost of medical care plunged by 1.3
percentage points to 7.4 per cent. In addition, the perceptions of year-ahead
change in the price of gas declined by 0.8 percentage point to 2.7 per cent, and
those for rent dropped 0.6 percentage points to 8.4 per cent. At the same time,
the expectations for the year-ahead change in the price of food jumped by 0.4
percentage point to 5.5 per cent, the highest level since October 2023.
Elsewhere, home price growth expectations fell by 0.3 percentage point to 3.0 per cent.
The report also revealed that the three-year-ahead
inflation expectations eased to 3.0 per cent in May from 3.2 per cent in
April, and the five-year-ahead
inflation expectations slipped to 2.6 per cent from 2.7 per cent in the previous month.