“While short- and medium- term inflation expectations were unchanged, households were generally less optimistic about the economy and about future changes in their financial situation,” the Federal Reserve Bank of New York noted in its latest Survey of Consumer Expectations.
Key takeaways from the press release
- Median inflation expectations at both the one-year and three-year horizons were unchanged at 3.0% in January.
- Median one-year ahead earnings growth expectations declined to 2.4% in January, from 2.5% in December, and remain below the 2018 average of 2.6.
- Median expected household income growth decreased slightly in January, to 2.8%, from 2.9% in December, and is in line with the 2018 average.
- Median household spending growth expectations decreased notably, falling from 3.5% in December to 3.0% in January, which is below its 2018 average of 3.2%.