Consumer inflation expectations remained unchanged at the short- and longer-term horizons but rebounded slightly at the medium-term horizon after a sharp decrease in July, according to the Federal Reserve Bank of New York’s Survey of Consumer Expectations for August. Median inflation expectations at the one- and five-year horizons were unchanged in August at 3% and 2.8%, respectively. Median inflation expectations at the three-year horizon increased to 2.5% from 2.3% in July.
Median expected growth in household income increased by 0.1 percentage point to 3.1%, according to the New York Fed. Median household spending growth expectations increased by 0.1 percentage point to 5%. Perceptions of credit access compared to a year ago improved with a smaller share reporting tighter conditions compared to a year ago. The average perceived probability of missing a minimum debt payment over the next three months increased by 0.3 percentage points to 13.6%, its third consecutive increase.
