Americans' short-term inflation expectations down in July: New York Fed

By Ovunc Kutlu

ISTANBUL (AA) - American consumers' short-term inflation expectations declined in July, according to a survey released Monday by the Federal Reserve Bank of New York.

The median one-year-ahead inflation expectation decreased by 0.3 percentage points to 3.8% last month from 3.5% in June, the survey showed.

The latest figure is the lowest reading since April 2021, it noted.

While the one-year-ahead expected price changes for college education fell by 0.3 percentage points to 8%, they declined by 0.4 percentage points to 9% for rent, according to the survey.

Both the three-year and five-year-ahead inflation expectations decreased by 0.1 percentage points to 2.9% from 3%.

The median one-year-ahead expected earnings growth declined by 0.2 percentage points to 2.8%, the report said.

Consumer inflation in the US rose 9.1% annually in June, the largest 12-month increase since November 1981. With the Fed's aggressive monetary tightening and rapid interest rate increases, consumer inflation eased to 3% in June but rose to 3.2% in July.