Consumers’ short-term inflation expectations rose slightly in February but remained unchanged in the medium- and long-term horizons, the Federal Reserve Bank of New York said today in its most recent Survey of Consumer Expectations. Median inflation expectations increased by 0.1 percentage point at the one-year horizon to 3.1% and were unchanged at 3% for both the three-year and five-year horizons.
The median expected growth in household income increased by 0.1 percentage point to 3.1% in February, according to the report. Median nominal household spending growth expectations rose by 0.6 percentage points to 5%.
Perceptions of credit access compared to a year ago showed that a larger share of households reported that it is harder to get credit, and a smaller share reported that it is easier. The average perceived probability of missing a minimum debt payment over the next three months increased by 1.3 percentage points to 14.6%, the highest level since April 2020.
