The New York
Fed reported on Monday that the U.S. consumer inflation expectations for the
year ahead fell to 3.0 per cent in December 2023 from 3.4 per
cent in November. This was the lowest reading since January 2021 (3.0 per cent).
According
to the report, the anticipations about year-ahead price change for rent declined
by 0.7 percentage point to 7.3 per cent, while those for food prices slipped by 0.3
percentage point to 5.0 per cent. Meanwhile, the perceptions of year-ahead
change in the cost of a college education increased by 0.5 percentage point to 6.3
per cent. The
expectations for year-ahead changes in gas price and the cost of medical care remained
unchanged at 4.5 per cent and 9.1 per cent, respectively. Elsewhere, home price growth expectations remained
unchanged at 3.0 per cent for the fourth straight month.
The
three-year-ahead inflation expectations decreased to 2.6 per cent in December from 3.0 per cent in November, and the
five-year-ahead inflation expectations declined to 2.5 per cent from 2.7 per cent in the previous
month.