The Federal Reserve Bank of New York's Center for Microeconomic Data released on Monday the July 2024 edition of its Survey of Consumer Expectations, which showed the projections for median three-year inflation in the United States to decline by 0.6 percentage points compared to the previous month to 2.3%, the highest level it has been since the questionnaire's introduction in June 2013.
The expectations for the median one- and five-year inflation outlook remained the same at 3.0% and 2.8%, respectively. The one-year ones for gas prices decreased by 0.8 percentage points to 3.5% and for food by 0.1 percentage points to 4.7%. However, those for the costs of medical care, college education, and rent increased by 0.2 percentage points to 7.6%, 1.9 percentage points to 7.2%, and 0.6 percentage points to 7.1%, respectively.
The participants in the survey shared mixed expectations regarding the labor market, predicting slower growth in earnings and more hardships in finding a new job. Meanwhile, delinquency expectations went up to the highest level since April 2020.
