The median one-year-ahead inflation expectations in December 2022 were down 0.2 percentage points to 5%, the lowest since July 2021, the Federal Reserve Bank of New York revealed in a survey published on Monday. The inflation expectations for three years ahead stood at 3%, the same level they were in November, but survey respondents said they expect inflation to clock in at 2.4% five years from now, a figure 0.1 percentage points higher compared to the previous report.
"Household spending expectations fell sharply in December, while income growth expectations rose to a new series high. Home price expectations rose slightly, but remain below their pre-pandemic levels. Households' perceptions about their current financial situation and their expectations about their future financial situation one year from now improved in December," the NY Fed also said in its December 2022 Survey of Consumer Expectations.
