Macro 08/15: Inflation expectations cooling broadly

Fed New York: Inflation expectations cooling broadly

In the latest consumer expectations survey, Fed New York reported 1Y inflation expectations down to 3.5% (expected 3.8%), the lowest since April 2021. 3-year and 5-year inflation expectations both fell from 3% to 2.9%.

Future inflation is expected to ease as some key items begin to decline. Consumers expect lower inflation for gasoline (4.5%), food (5.2%), medical costs (8.4%), tuition 8.0%) and rent (9%).