Americans' short-term inflation expectations fall in May

By Ovunc Kutlu

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

The median one-year ahead inflation expectations decreased to 3.2% in May from 3.3% in April.

However, the median three-year ahead inflation expectations was unchanged at 2.8% last month, while the five-year ahead inflation expectations rose to 3% from 2.8% during that period.

"Median expected growth in household income increased by 0.1 percentage point to 3.1%," the New York Fed said in a statement. "Median household spending growth expectations declined by 0.2 percentage point to 5.0%."

"Households’ expectations for the stock market improved, reaching a three-year high," it said. "Households were also more optimistic about their financial situation a year from now."