US consumers' August inflation expectations announced
In August, short-term inflation expectations remained unchanged at 3.6%, while medium-term expectations declined to 3.2%.
According to the Consumer Expectations Survey published by the Federal Reserve Bank of New York, consumers' short-term inflation expectations remained steady at 3.6% in August.
Survey Results and Short-Term
The results of the August Consumer Expectations Survey released by the Federal Reserve Bank of New York were shared with the public. According to the research conducted with the participation of approximately 1,300 households, the median inflation expectation for the next 12 months showed no change compared to the previous month, realizing at the level of 3.6%.
Medium and Long-Term Expectations
Consumers' long-term inflation expectations continued to remain steady at the 3% level. Meanwhile, medium-term inflation expectations decreased by 0.1 percentage points to fall to 3.2%.
Cost Increase Expectations
Expectations regarding increases in gasoline prices maintained their upward trend in August. Consumers' forecast that gasoline prices will rise over the next year increased by 1.7 percentage points, reaching 4.6%.
Food and Education Costs
Expectations regarding cost increases reached 5.3% with a 0.3 percentage point increase in the food sector, and 9.1% with a 0.2 percentage point rise in healthcare services. The expectation for increases in university education costs rose by 0.3 percentage points to reach 6.1%.
Labor Market Data
While expectations regarding the labor market followed a mixed course, expectations that the unemployment rate would be higher over the next year increased by 1.6 percentage points to reach 44.4%. This rate became the highest level seen since April 2020.