US consumers' short-term inflation expectations fall

The US Federal Reserve (Fed) New York Branch announced that American consumers’ short-term inflation expectations decreased from 4.7 percent in April to 4.4 percent. The New York Fed has published the results of its Survey of Consumer Expectations for April. According to the results of the survey conducted with the participation of approximately 1,300 households, the short-term median inflation expectation covering the next 12 months decreased by 0.3 points to 4.4 percent in April. The medium-term inflation expectation covering the next 3 years increased by 0.1 points to 2.9 percent in April. During the same period, the long-term inflation expectation covering the next 5 years also increased by 0.1 points to 2.6 percent. While the expectation regarding the increase in household spending decreased from 5.7 percent to 5.2 percent in April, the lowest value was recorded since September 2021. Expectations for the increase in household income also decreased by 0.2 points to 3.1 percent in April. During this period, the expected increase in housing prices increased by 0.7 points to 2.5 percent, reaching the highest value since July of last year. Expectations for the increase in costs decreased for food and increased for energy. Expectations for the increase in healthcare and rental costs remained unchanged. - April inflation in the US to be announced on Wednesday According to data announced last month in the US, the Consumer Price Index (CPI) had increased by 0.1 percent monthly and 5 percent annually in March, below market expectations. The market expectation for April inflation in the country, to be announced on Wednesday, is a monthly increase of 0.4 percent and an annual increase of 5 percent.