Photo: Justin Sullivan/Getty Images
US consumer perceptions of inflation have begun to fall at levels not seen since July 2021.
According to a recent survey by the Federal Reserve Bank (Fed) of New York, during December, inflation expectations for consumers fell 0.2% to settle at 5%.
Meanwhile, expectations in the medium term, three years, had no changes and remained at 3%, according to the survey published this Monday by the New York Fed.
Finally, consumer perception of inflation for the next 5 years increased by 0.1% to settle at 2.4%, very close to the Fed’s target of 2%.
Good news for the Fed
Although in the medium and long term consumers did not have significant changes regarding how they perceive inflationary movements, the constant fall in the short term This is good news for the Fed.
The central bank looks closely at the results of these surveys, since from the data it analyzes if inflation starts to take hold among consumers Americans, which would be particularly dangerous for the economy.
According to New York Fed Governor Lisa Cook, the results show that despite today’s high prices, consumers expect inflation to return to pre-pandemic levels.
“Any unanchoring of expectations would be a big concern, as it could make the high inflation we’ve been experiencing more persistent,” Cook said.
What do you expect from inflation for December?
The consumer expectations survey comes a few days after this Thursday, the Bureau of Labor Statistics will announce the behavior of inflation for December 2022.
According to economists surveyed by Bloomberg, inflation will be located at 6.6% in its annual measurement for December past, which would mark a new drop in the thread for this indicator.
While in their month-to-month measurement, economists consider that inflation will remain stable.
Meanwhile, the core Consumer Price Index (CPI), which excludes food and gasoline prices and is a key measure for the Fed, is expected to come in at 5.7% in its annual measurement.
You may also like:
Why is the Fed so concerned about slowing its key rate hike?
– The job market in the US healthy, but with signs of slowdown, according to BLS
– Americans should prepare for a “slow recession” in 2023, warns Moody’s