Consumer expectations for inflation are at an all time high, according to a survey from The Federal Reserve Bank of New York released Monday.
Median one-year-ahead inflation expectations are at 6.8%, up from 6.6% in May, the highest rate since the New York Fed starting conducting this survey in 2013. Expectations that the U.S. unemployment rate will increase in a year hit its highest level since April 2020, increasing by 1.8 percentage points to 40.4%, according to the survey.
The Survey of Consumer Expectations, “captures respondents’ expectations for inflation, job prospects, and earnings growth, among other topics,” according to the New York Fed. (RELATED: Costco Increases Prices On Two Food Staples)
The New York Fed surveys a rotating panel of 1,300 households heads. The survey allows for observing the change in expectations for the same group of individuals over time.
U.S. consumers see inflation picking up in year ahead, but moderating over longer term: New York Fed survey https://t.co/OJOSTZZP4e
— The Globe and Mail (@globeandmail) July 11, 2022
Consumers surveyed expected prices in a year to increase by 0.1% for gas, rent, medical care, and college education. Consumers expected food prices to decrease by 0.1%, according to the survey. Expectations for inflation in three years decreased by 0.3%.
Consumers said the probability of missing a debt payment in the next three months was 11.3%, up by 0.2% and its highest rate since May 2020, the survey noted.