Consumer inflation expectations declined slightly at the short-, medium-, and longer-term horizons in October, the Federal Reserve Bank of New York said in its most recent Survey of Consumer Expectations. One-year-ahead inflation expectations declined by 0.1 percentage points to 2.9%, three-year-ahead inflation expectations declined by 0.2 percentage points to 2.5%, and five-year-ahead inflation expectations declined by 0.1 percentage points to 2.8%.
The median expected growth in household income was unchanged at 3% in October. Median household spending growth expectations were unchanged at 9% but remained above pre-pandemic levels. The average perceived probability of missing a minimum debt payment over the next three months decreased by 0.3 percentage points to 13.9%, the first decrease since May.
