US consumers see inflation dropping sharply over the next year, and they expect the cost of food, gas and other essentials to rise more slowly, according to a survey by the Federal Reserve Bank of New York.
Median one-year-ahead inflation expectations declined by 0.8 percentage point to 4.2% in February, the lowest reading since May 2021. Expectations for inflation three years ahead were unchanged at 2.7%, according to the New York Fed’s Survey of Consumer Expectations.
Longer-term inflation expectations edged up slightly, with median five-year-ahead inflation expectations increasing by 0.1 percentage point to 2.6%.
The survey comes out amid ...
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