Inflation Expectations Climb According to NY Fed Survey

The Federal Reserve Bank of New York has released its latest consumer survey, indicating a notable shift in inflation expectations. While the one-year-ahead inflation expectations have remained steady at 3%, there's been an increase of 0.4 percentage points in the three-year-ahead horizon, also reaching 3%. Conversely, the five-year-ahead horizon expectations have seen a slight decrease of 0.2 percentage points, settling at 2.7%.

Household Spending Growth on the Rise

December saw a 0.1 percentage point increase in median household spending growth expectations, climbing to 4.8%. The survey also highlighted an improvement in perceptions about households' current financial situations. Fewer respondents reported being worse off, while more reported being better off compared to a year ago, signaling a positive shift in consumer confidence.