Consumers decreased their expectations for three-year inflation while their projections for one year out held steady, according to the July Survey of Consumer Expectations, released by the Federal Reserve Bank of New York on Monday.
Median inflation expectations remained at 2.5% for a one-year period and fell to 2.5% from 2.9% for a three-year horizon. "Notably, while the median declined, there was little change in the 25th or 75th percentiles of the cross-sectional distribution of median medium-term inflation expectations," the Fed said. "The decline was broad-based and observed for all age, education, and income groups."
Turning to labor, the expected earnings for one-year slid to 2.2% from 2.5%, The mean perceived probability of losing one's job in the next 12 months grew to 15.0% from 13.8%, while the chances of voluntarily leaving a job climbed to 21.0% from 20.0%. The probability of finding a job, if one lost his/her current job) declined to 53.3% from 53.6%.
Median one-year ahead home prices are expected to grow 3.3%, up from 3.1% last month.
Median household spending expectations crept to 3.8% from 3.6%.
Consumers see gas price growth in the next year at 4.9%, down from 5.3% last month.
