NY Fed inflation expectations jump despite lower gas prices
The New York Fed Survey of Consumer Expectations shows that Americans are growing worried about the high cost of living, as one-year inflation expectations rose from 3.5% in May to 3.7% in June, the highest level since September 2023.
For the next three years, the poll showed that households expect inflation to rise from 3.1% to 3.3%, and for the next five years, it was unchanged at 3%.
The survey showed that expectations for gasoline prices hit their lowest level since August 2022, with US consumers more upbeat about current and future personal finances. The poll showed that households' labor market expectations are improving.
Market’s reaction
The US Dollar Index (DXY), which tracks the buck’s performance versus a basket of six currencies, is up 0.10% after hitting a two-day low of 100.81. The Greenback has recovered some ground amid geopolitical woes and elevated inflation expectations, which increase the chances of further tightening towards the end of the year.
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