U.S. Inflation Expectations Remain Steady in January, Reports New York Fed

According to Odaily, the New York Federal Reserve's January report indicates that U.S. public expectations for short-term inflation remained stable. The survey revealed that the anticipated inflation rate for one year and three years ahead held steady at 3%. However, the expectation for inflation five years from now increased from 2.7% in December to 3% in January. The report also highlighted that the public foresees significant increases in future costs for food, gasoline, rent, college, and healthcare. Meanwhile, expectations for housing prices rose slightly from 3.1% in December to 3.2% in January. Additionally, consumer expectations for future household spending decreased from 4.8% in December to 4.4% in January, marking the lowest level since January 2021. Despite this decline, the report notes that this figure remains above pre-pandemic levels.