Consumer household inflation expectations in May decreased at the short-term horizon and remained unchanged at the medium- and longer-term horizons, according to the Federal Reserve Bank of New York’s most recent Survey of Consumer Expectations.
Median inflation expectations decreased by 0.1 percentage point to 3.5% at the one-year-ahead horizon and were unchanged at 3.1% and 3% at the three-year and five-year-ahead horizons in May. However, median home price growth expectations increased by 0.5 percentage points to 3.5%, which was the highest reading since July 2022.
The median expected growth in household income remained unchanged at 2.8%. Perceptions of credit access compared to a year ago remained largely unchanged, with a greater share of households reporting that credit availability was equally easy or difficult. The average perceived probability of missing a minimum debt payment over the next three months rose by 1.2 percentage points to 12.6%, staying below its 12-month trailing average of 12.9%.
