Inflation expectations grew to a series high in June, in line with the record-high household spending growth expectations.
- The median inflation expectations for the next year grew by 0.8 percentage points to a series high of 4.8%, while inflation expectations for the three-year horizon were unchanged at 3.6%.
- Increases were seen in inflation expectations for home prices and college education costs in the year ahead, both hitting significant climbs. Declines were recorded in expected changes in the prices of food and gasoline.
- The expected earnings growth climbed to 2.6%, the highest since the start of the COVID-19 pandemic in February. Unemployment expectations for the coming year fell to a new series low of 30.7%.
- Household income growth expectations climbed to 3.0% while spending growth expectations increased to a fresh series high of 5.2%. This was mostly seen in respondents with a college education.
Credit perceptions posted a slight improvement, while expectations for future credit availability dropped.
Source: Federal Reserve Bank of New York