US consumer inflation expectations at 2-year low

American consumers’ short-term inflation expectations fell to 3.4 percent in November, the lowest level since April 2021. The U.S. Federal Reserve (Fed) New York Branch released the results of its Survey of Consumer Expectations for November. According to the results of the survey conducted with the participation of approximately 1,300 households, the median short-term inflation expectation covering the next 12 months decreased by 0.2 points to 3.4 percent in November. Thus, short-term inflation expectations recorded their lowest level since April 2021. The median inflation expectation covering the next 3-year period remained unchanged at 3 percent in the same period, while the median inflation expectation covering the next 5-year period remained at 2.7 percent. The expectation for an increase in household spending decreased by 0.1 points to 5.2 percent in November. The expectation for an increase in household income remained unchanged at 3.1 percent in November. During this period, expectations for increases in costs decreased by 0.5 points to 4.5 percent for gasoline, by 0.2 points to 5.8 percent for university education, by 1.1 points to 8 percent for rent, and by 0.3 points to 5.3 percent for food. The expectation for increases in healthcare costs remained flat at 9.1 percent. November inflation in the US to be announced tomorrow According to data announced last month in the US, the Consumer Price Index (CPI) showed no change on a monthly basis in October, but increased by 3.2 percent annually, below market expectations. The market expectation for November inflation in the country to be announced tomorrow is for it to show no change on a monthly basis and to increase by 3.1 percent annually.