Consumer inflation expectations in June ticked down at the short-term horizon but remained flat at the medium- and longer-term horizons, according to the Federal Reserve Bank of New York’s most recent Survey of Consumer Expectations. Median inflation expectations decreased by 0.2 percentage points to 3% at the one-year-ahead horizon. They were unchanged at the three-year- and five-year-ahead horizons at 3% and 2.6%, respectively.
The median expected growth in household income increased by 0.2 percentage points to 2.9% in June, equaling its 12-month trailing average, according to the New York Fed. Median growth expectations for household spending declined by 0.2 percentage point to 4.8%. Perceptions of credit access compared to a year ago showed a smaller 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 1.4 percentage points to 12%, reaching the lowest level since May 2024.
