Consumer inflation expectations in July increased at the short- and longer-term horizons and were unchanged at the medium-term horizon, according to the Federal Reserve Bank of New York’s most recent Survey of Consumer Expectations. Median inflation expectations increased at the one-year-ahead horizon from 3% to 3.1% and at the five-year-ahead horizon from 2.6% to 2.9%. They remained steady at the three-year-ahead horizon at 3%.
The median expected growth in household income was unchanged at 2.9% in July, according to the survey. Median nominal household spending growth expectations ticked up by 0.1 percentage point to 4.9%. Perceptions of credit access compared to a year ago deteriorated slightly, with the net share of households reporting it is easier versus harder to get credit decreasing. The average perceived probability of missing a minimum debt payment over the next three months increased by 0.3 percentage points to 12.3%, remaining below the trailing 12-month average of 13.6%.
