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Why the New York Fed asks ordinary folks where inflation is headed

Aug 12, 2024
Consumers' price expectations influence how they save and spend their money, potentially creating self-fulfilling prophecies.
Even though consumers don't make scientific predictions, there's value in understanding their expectations of the economy.
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It's a big week for inflation data. What do we know about consumers' expectations?

Aug 12, 2024
The New York Fed is scheduled to report on consumer inflation expectations Monday morning, producer prices Tuesday and the consumer price index on Wednesday.
Inflation expectations “don’t matter at all" when it comes to consumers spending their money, according to Robert Frick at Navy Federal Credit Union.
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Consumers don't expect their incomes to grow as fast as prices

May 13, 2024
Consumers forecast inflation at 3.3% this time next year and are less confident that their earnings will rise as much as they had expected.
Consumers expect to spend more on the need-to-haves, like housing and food. Discretionary want-to-haves in their budgets may be squeezed.
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Federal Reserve survey shows consumer inflation expectations holding steady

Apr 8, 2024
Households expect inflation to be 3% in a year. While that’s not up from the previous month, it’s also not down.
For consumers, it's important that the Fed expresses its commitment to getting inflation down to 2%, no matter how long it takes, economist Carola Binder said.
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After the long night of inflation, consumers finally expect to see the sun

Jan 8, 2024
Consumers forecast inflation at 3% a year from now, the lowest their short-term expectations have been in three years.
One reason consumers are feeling better about inflation is that major price hikes for essentials like gasoline and eggs appear to be in the past. But that doesn't mean prices will fall.
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Consumers expect inflation to tick down in the next 3 years

Sep 11, 2023
But they expect other key measures to be less positive. Here's what that means for the Fed.
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Consumers are on an inflation expectations roller coaster

Feb 14, 2022
Even though sentiment has tanked, a New York Fed survey finds that consumers expect inflation to ease in the future.
Consumers are feeling the pinch of inflation pretty much any time they open their pocketbooks — but they're optimistic that price gains will ease in the coming years.
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Consumers are getting used to higher inflation

Oct 13, 2021
The consumer price index rose 5.4% year over year, as consumers' inflation expectations hit a series high of 5.3%, the New York Fed said.
Consumers are feeling inflation everywhere from groceries to rent to gas prices. Above, customers shop for fresh fish in San Francisco in 2021.
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