Consumers’ inflation expectations held for three-year, but rose for the one-year horizon, according to the October Survey of Consumer Expectations, released by the Federal Reserve Bank of New York on Monday.
“While inflation expectations were relatively stable, year-ahead expectations of food price changes reached their lowest value since the start of our survey in June 2013,” the survey noted.
Median inflation expectations grew to 2.6% in October from 2.5% in September for a one-year period and held at 2.8% for a three-year horizon.
Turning to labor, the expected earnings growth for one-year slid to 2.1% from 2.3%. The mean perceived probability of losing one’s job in the next 12 months rose to 15.3% from 13.8%, while the mean probability of leaving one’s job voluntarily in the next 12 months gained to 23.1% from 20.6%.
The probability of finding a job, if one lost his/her current job, slipped to 57.7% from 59.2%.
Median one-year ahead home prices are expected to grow 3.0%, unchanged from last month, the Fed said.
Median household spending expectations crept to 2.8% from 2.7%, below the trailing 12-month average of 3.1%. Income growth expectations climbed to 2.6% from 2.2.