Americans don’t expect big drops in inflation rate anytime soon

1 min read

A day ahead of the October inflation report, consumers think inflation rates will barely continue their slow ebb away from scorching levels.

Even with rates inching incrementally lower, people’s expectations for inflation were largely unchanged from September to October, according to the latest survey of consumer expectations from the Federal Reserve Bank of New York.

The median estimated inflation rate one year from now will be 3.6%, according to the survey released Monday. That’s a slight drop from the 3.7% year-ahead estimate in last month’s survey.

Still, consumers’ expected year-ahead inflation rates have been stuck around the mid-to-high-3% range since June.

The Labor Department will release October’s consumer-price index on Tuesday morning.

In September, year-over-year inflation rates were 3.7%, unchanged from August and coming in slightly higher than the forecast 3.6% annualized rate.

In October, year-over-year inflation rates could drop to 3.3%, according to economists polled by the Wall Street Journal.

Inflation expectations are inching lower, according to the New York Fed data. April 2021 was the last time consumers were expecting year-ahead inflation rates in the 3% range, the survey data show.

In a different gauge of consumer sentiment last week, consumers said they thought inflation rates would increase to 4.4% in the year ahead. The overall sentiment numbers from the University of Michigan polling hit a six-month low.

Read also: Citadel’s Ken Griffin sees high inflation lasting for decades

Inflation rates hit four-decade highs in 2022, but the aftereffects still sting. The question is, what spending decisions are people making now, especially as the holidays near?

One theory is that higher-income consumers are continuing to spend, while lower-income consumers are pulling back more and feeling the strain on their budget.

Major retail businesses will offer clues this week, with Walmart Inc.
WMT,
+0.10%
and Target Corp.
TGT,
+4.48%
both reporting earnings results.

Earlier this month, Target CEO Brian Cornell said people are “buying less stuff, even within food and beverage.”

Read the full article here

Leave a Reply

Your email address will not be published.

Previous Story

Palladium’s slide accelerates on prospects for surplus next year

Next Story

David Cameron’s return brings his role for fallen Greensill back to the fore

Latest from Finance

مشاهير العرب سكس arabpornsamples.com زبر نايم
قصص ن realarabporn.com انجلا وايت
little pussy analpornstars.info chut land ki film
old movies telugu fuckmetube.mobi sapna rathi sex
pandaniku youhentai.org cbt hentai
xx com indian indianpornfeed.com bf vs gf
bf sex sex sex hqtube.mobi husband wife sexy video
desi sex video tumblr sexozavr.com animal fuck women
marathi blue film com xxx-tube-list.info xixxx video
bed room xnxx prontv.mobi real chut image
ytmp4 eroanal.net bhojpuri sexy
fpo xxx indiandesiclips.com nepal call girl
xvideo wwe gotporn.mobi www.indianxnxx
sex videos sunny leone erofreeporn.net hot malayalam actress navel pictures
presyo ng mga bilihin onlineteleserye.com love revolution season 2