Consumer inflation expectations in September 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 Survey of Consumer Expectations. Median inflation expectations increased at the one-year-ahead horizon from 3.2% to 3.4% and at the five-year-ahead horizon from 2.9% to 3%. They remained steady at the three-year-ahead horizon at 3%.
The median expected growth in household income was unchanged at 2.9% in September, according to the survey. Median nominal household spending growth expectations declined by 0.3 percentage points to 4.7%.
Perceptions of credit access compared to a year ago were largely unchanged while expectations for future credit availability improved, with the net share of respondents expecting it will be easier versus harder to obtain credit a year from now increasing slightly. The average perceived probability of missing a minimum debt payment over the next three months decreased by 0.5 percentage points to 12.6%.
