Consumer inflation expectations in February remained unchanged at the short-term horizon but increased at the medium- and long-term horizons, the Federal Reserve Bank of New York said today in its most recent Survey of Consumer Expectations. Median inflation expectations held steady at 3% at the one-year horizon but increased from 2.4% to 2.7% at the three-year horizon and from 2.5% to 2.9% at the five-year horizon.
Median expected growth in household income remained unchanged at 3.1%, according to the New York Fed. Median household spending growth expectations increased by 0.2 percentage points to 5.2%. Perceptions of credit access deteriorated with a larger share of respondents reporting tighter conditions, and a smaller share reporting looser conditions, compared to a year ago. The average perceived probability of missing a minimum debt payment over the next three months decreased by 0.7 percentage points to 11.4%.
