US Consumers Hold Steady on Inflation Expectations Despite Job Worries

The latest survey from the New York Federal Reserve shows that US consumers' inflation expectations remain steady, despite concerns about employment and personal finances increasing. The Survey of Consumer Expectations reported that respondents maintained their projection of 3.6% inflation one year from now and 3% five years from now. However, expected inflation three years from now decreased to 3.2% from 3.3% in July.

According to the report, consumers anticipated higher gasoline prices in one year. The survey also showed that respondents' outlook on employment weakened in August, with expectations for the unemployment rate reaching its highest level since April 2020. This trend was consistent across different age, income, and education levels.

The perceived probability of losing a job decreased in August compared to July, but the likelihood of finding new employment after involuntary job loss also declined. Survey participants lowered their assessments of current and future financial situations, as well as their views on credit access now and in one year.