Consumer inflation expectations remained unchanged at the short-term horizon in September but grew slightly at the medium- and longer-term horizons, the Federal Reserve Bank of New York said today in its most recent Survey of Consumer Expectations. Median inflation expectations remained held steady at 3% at the one-year horizon, increased from 2.5% to 2.7% at the three-year horizon and increased from 2.8% to 2.9% at the five-year horizon.
Median expected growth in household income declined by 0.1 percentage point in September to 3%, according to the New York Fed. Median household spending growth expectations decreased by 0.1 percentage point to 4.9%.
Perceptions of credit access compared to a year ago improved with a smaller share of respondents reporting tighter conditions and a larger share reporting improved credit availability compared to a year ago, according to the survey. The average perceived probability of missing a minimum debt payment over the next three months increased for the fourth consecutive month from 13.6% in August to 14.2% in September.
