The Federal Reserve (Fed) Bank of New York noted in its latest Survey of Consumer Expectations that the year-ahead inflation expectation stood at 3.2% in May, down from 3.6% in April.
Key takeaways
“May three-year ahead expected inflation 3% vs. April’s 3.2%.”
“May five-year ahead expected inflation 2.6% vs. April’s 2.7%.”
“May home price rise expectations at 3% vs. April’s 3.3%.”
“Consumers expecting slower gains in gas, medical care, college and rent.”
“May view on personal financial situation improved slightly.”
“Consumers’ outlook on job market improved in May.”
“In May, households lowered expectations of missing debt payment.”
Market reaction
The findings of the survey failed to trigger a noticeable market reaction. At the time of press, the US Dollar Index was down 0.15% on the day at 99.05.
