Consumer inflation expectations in October decreased at the short-term horizon and remained unchanged at the medium- and longer-term horizons, the Federal Reserve Bank of New York said in its most recent Survey of Consumer Expectations. Median inflation expectations decreased by 0.2 percentage points to 3.2% at the one-year-ahead horizon in October. They were unchanged at the three-year- and five-year-ahead horizons, both at 3%.
The median expected growth in household income declined by 0.1 percentage point to 2.8% in October, according to the New York Fed. Median one-year-ahead household spending growth expectations increased by 0.1 percentage point to 4.8%.
Perceptions of credit access compared to a year ago improved with a smaller share of households reporting it is harder to get credit — the lowest since February 2022 — and a larger share of households reporting it is easier to get credit. The average perceived probability of missing a minimum debt payment over the next three months increased by 0.5 percentage points to 13.1%, remaining below its 12-month trailing average of 13.3%.
