Consumers increased their expectations for inflation, according to the February Survey of Consumer Expectations, released by the Federal Reserve Bank of New York on Monday.
Median inflation expectations grew to 2.7% from 2.4% for a one-year period and to 2.6% from 2.5% for a three-year horizon.
Turning to labor, the expected earnings for one-year grew to 2.5% from 2.1%, compared to its 2.4% average in 2015. The mean perceived probability of losing one’s job in the next 12 months dipped to 13.8% from 13.9%, while the chances of voluntarily leaving a job slid to 21.3% from 21.4%.
Median one-year ahead home prices are expected to grow 3.1%, up from 3.0% last month.
Median household spending expectations climbed to 4.0% from 3.0%.
Consumers see gas price growth in the next year at 4.9%, up from 2.8% last month.
In two new data points added to the survey this month, 37.9% of respondents said they expect the unemployment rate to be higher in a year, while 29.9% said they see interest rates higher in a year from now.
