Key Facts
• On June 9, the NY Fed released its May consumer survey results.
• Inflation expectations for 1 year ahead dropped to 3.2% (April: 3.6%).
• 3-year inflation expectations fell to 3% (April: 3.2%).
• 5-year inflation expectations decreased to 2.6% (April: 2.7%).
• Gasoline, rent, medical, and college cost growth expectations eased.
• Food price growth expectations for 1 year ahead rose to 5.5%, highest since Oct 2023.
• Housing price growth expectations for 1 year ahead fell to 3% (April: 3.3%).
• Consumer views on income, employment, and financial situations showed slight improvement.
• Access to credit improved compared to last year, with lower debt repayment concerns.
Summary
The New York Federal Reserve’s May consumer survey revealed a decline in inflation expectations across all timeframes. One-year inflation expectations dropped to 3.2%, while three-year and five-year expectations fell to 3% and 2.6%, respectively. Expectations for gasoline, rent, medical, and college cost growth eased, but food price growth for the next year rose to 5.5%, the highest since October 2023. Housing price growth expectations for the next year decreased to 3%. Consumers expressed slightly improved views on income, employment, and financial situations, with better access to credit and reduced concerns about debt repayment. These findings indicate a more optimistic outlook on inflation and personal finances.
