Consumer inflation expectations in January were unchanged at the short- and medium-term horizons but increased at the longer-term horizon, according to the Federal Reserve Bank of New York’s latest Survey of Consumer Expectations. Median inflation expectations held steady at 3% at both the one- and three-year-ahead horizons while median five-year-ahead inflation expectations rose by 0.3 percentage points to 3%.
The median expected growth in household income increased by 0.2 percentage points to 3% in January, according to the survey. Median household spending growth expectations declined by 0.4 percentage points to 4.4%. Perceptions of credit access compared to a year ago improved in January, with the net share of households reporting it is easier to obtain credit increasing. The average perceived probability of missing a minimum debt payment over the next three months decreased by 0.9 percentage points to 13.3%.
