U.S. Inflation, Income, and Household Spending Expectations to Continue Rising

Source: Federal Reserve Bank of New York.

The Federal Reserve Bank of New York’s Survey of Consumer Expectations revealed an increase in the short-term inflation expectations as medium-term inflation expectations remained unchanged. DJI gains 0.24%.

• The median inflation expectations increased by 0.8 percentage points in June to reach a one-year high of 4.8%. 
• The households’ labor market expectations will continue to expand with unemployment expectations and possible likelihood of job loss. 
• The perceived possibility that the U.S. stock prices will expand in 12 months from now dropped to 40.2%, below its 2020 average of 44.3%. 
• The perceived probability of getting a job in the next 3 months rose by 0.2 percentage points to 44.2%, the highest level since February 2020.
• The household’s 12-month income and spending growth expectations recorded a sustainable upward trend. The price growth of homes remained high. 
• The perceptions about current financial situations of households deteriorated compared to past year as more people reported being worse off financially compared to previous year.