The New York
Fed reported on Tuesday that the U.S. consumer inflation expectations for the
year ahead dropped to 3.0 per cent in June from
3.2 per cent in May. This was the lowest reading since January (3.0 per cent).
According
to the report, the anticipations about the year-ahead change in the cost of medical
care surged by 1.9 percentage points to 9.3 per cent (the highest level since
June 2023), while those for the cost of college jumped by 1.6 percentage points to 9.1
per cent. In addition, the perceptions of year-ahead change in the price of gas
climbed by 1.5 percentage points to 4.2 per cent, and those for rent increased
by 0.7 percentage point to 9.1 per cent. At the same time, the expectations
for year-ahead change in the price of food remained unchanged at 5.5 per cent. Elsewhere, home price growth expectations were unchanged at
3.0 per cent.
The report also revealed that the
three-year-ahead inflation expectations held steady at 3.0
per cent in June,
and the five-year-ahead inflation expectations remained
unchanged at 2.6 per cent.