SURVEY OF CONSUMER EXPECTATIONS
April Survey: Inflation Expectations Are Mixed Across Short-, Medium-, and Longer-Term Horizons; Financial and Labor Market Expectations Decline
- Median inflation expectations were unchanged at the one-year-ahead horizon at 3.6 percent, increased by 0.2 percentage point (ppt) to 3.2 percent at the three-year-ahead horizon, the highest reading since July 2022, and decreased by 0.2 ppt to 2.7 percent at the five-year-ahead horizon.
- Households’ expected income growth decreased by 0.2 ppt to 2.6 percent in April, the lowest reading since April 2021.
- Households’ perceptions about their current financial situations deteriorated, with the share of consumers reporting that they are somewhat or much worse off compared to one year ago increasing. Similarly, households’ expectations about their future financial situations deteriorated, with the share of those believing they will be somewhat or much worse off a year from now also rising.
- Median one-year-ahead expected earnings growth decreased by 0.3 ppt to 2.5 percent in April, the lowest reading since December 2023.
For more details:
Press Release: Inflation Expectations Mixed; Financial Outlook for Households Deteriorates
