Consumer inflation expectations in March increased at the short-term horizon but ticked down at the long-term horizon, the Federal Reserve Bank of New York reported in its most recent Survey of Consumer Expectations. Median inflation expectations increased by 0.5 percentage points to 3.6% at the one-year-ahead horizon, were unchanged at 3% at the three-year-ahead horizon, and decreased by 0.1 percentage point to 2.9% at the five-year-ahead horizon.
The median expected growth in household income decreased by 0.3 percentage points to 2.8% in March, falling below its 12-month trailing average of 3%, according to the New York Fed. Median household spending growth expectations declined by 0.1 percentage point to 4.9%.
Perceptions of credit access compared to a year ago showed a larger share of households reporting it is harder to get credit. The average perceived probability of missing a minimum debt payment over the next three months decreased by 1 percentage point to 13.6%, remaining slightly above the 12-month trailing average of 13.4%.
