US short-term inflation expectations fall

In the US, consumers’ short-term inflation expectations decreased by 0.2 points to 3 percent in June. The US Federal Reserve (Fed) New York Branch published the results of its Survey of Consumer Expectations for June. 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 0.2 points to 3 percent in June. The median inflation expectation covering the next 3-year period increased by 0.1 points to 2.9 percent in the same period, while the median inflation expectation covering the next 5-year period decreased from 3 percent to 2.8 percent. While the expectation for an increase in household spending increased by 0.1 points to 5.1 percent in June, the expectation for an increase in household income decreased by 0.1 points to 3 percent. During this period, the expectation of an increase in costs decreased for all items, falling to 4.3 percent for gasoline, 4.8 percent for food, 7.4 percent for health care, 6.5 percent for rent and 5.3 percent for university education. June inflation in the US to be announced on Thursday The US Consumer Price Index (CPI) showed no change on a monthly basis in May, but increased by 3.3 percent on an annual basis. Market expectations for June inflation in the country, to be announced on Thursday, are for 0.1 percent on a monthly basis and 3.1 percent on an annual basis.