US consumer inflation expectations ease again, says NY Fed

US consumers' inflation expectations slid further in August as gasoline prices extended their steep decline from June's record high, a development likely to be welcomed by Federal Reserve policymakers weighing how big an interest rate hike to deliver next week.

Consumers in August saw inflation at 5.75% over the next 12 months, down from 6.2% in July and the lowest rate since October 2021, the New York Fed's monthly consumer expectations survey showed on Monday. They also foresee price increases averaging 2.8% over the next three years after pegging inflation over that horizon at 3.2% in July.

This may bring some relief to US central bank officials who have been fretting that the highest inflation in 40 years might alter consumers' perceptions of how sticky the current price shocks may be. Reuters