Consumer inflation expectations declined in the short-term horizon but increased when respondents were asked to look further out, according to the Federal Reserve Bank of New York’s most recent Survey of Consumer Expectations. Median inflation expectations at the one-year horizon declined from 3.3% in April to 3.2% in May. Expectations were unchanged at the three-year horizon at 2.8% but increased at the five-year horizon from 2.8% to 3%.
Median expected growth in household income increased by 0.1 percentage point to 3.1%, the New York Fed said. Median household spending growth expectations declined by 0.2 percentage points to 5%. Perceptions of credit access compared to a year ago were largely unchanged, although expectations about future credit access deteriorated, with a larger share of respondents expecting tighter credit conditions a year from now. The average perceived probability of missing a minimum debt payment over the next three months decreased by 0.9 percentage points to 12%
