Consumer inflation expectations in November remained unchanged at the short-, medium- and longer-term horizons, although consumers expect medical costs to rise sharply in the future, according to the Federal Reserve Bank of New York’s most recent Survey of Consumer Expectations.
Median inflation expectations in November remained unchanged at the one-year-ahead horizon at 3.2% and remained steady at the three-year and five-year-ahead horizons, both at 3%, according to the New York Fed. The main outlier was growth in medical care costs, with median inflation expectations reaching 10.1%, its highest level since 2014.
The median expected growth in household income increased to 2.9% in November from 2.8% in October. Perceptions of credit access compared to a year ago deteriorated, with the net share of respondents expecting it will be easier versus harder to obtain credit a year from now decreasing, while expectations for future credit availability were largely unchanged. The average perceived probability of missing a minimum debt payment over the next three months increased by 0.6 percentage point to 13.7%, modestly above the trailing 12-month average of 13.3%.
