A recent survey by the New York Fed revealed a significant shift in inflation expectations in the United States, marking a potential milestone in economic sentiment. For the first time since at least 2013, US consumer expectations for inflation over the medium term have dropped to their lowest level, with three-year inflation expectations hitting the lowest on record at 2.35% in January. This decline is reflected in several areas, with expected increases in food prices reaching their lowest point since March 2020, and rent expectations dropping to their lowest since December 2020. Financial markets are also adjusting their forecasts, now anticipating consumer-price inflation to fall below 3% for the first time since March 2021, a milestone not seen in nearly three years. Additionally, 1-year inflation expectations fell in January to the lowest level since December 2020, further signaling a potential turning point in inflation trends and offering a glimmer of hope for economic stability moving forward.
Inflation may have fallen below a 3% annual rate last month, which would be the lowest level in nearly three years. https://t.co/9JpV4becbb
Per @NewYorkFed survey, 1-year inflation expectations fell in January to lowest since December 2020; 3-year expectations fell to lowest on record https://t.co/IyfALLQMww
Inflation might have dropped below 3% last month for 1st time in 3 years, a milestone for Biden https://t.co/wIlFz3KDAL
US consumer expectations for inflation over the next three years fell to 2.35% in January, the lowest level since at least 2013: NY Fed survey https://t.co/cosCcDU4yV https://t.co/c9Z4TbYOju
Inflation expected to fall below 3% for the first time since March 2021 https://t.co/nOs61sh0mu by @allie_canal
Financial markets are counting on consumer-price inflation to fall below 3% for first time since 2021 https://t.co/6sY9kpovJQ
US consumer expectations for inflation over the medium term fell to the lowest level since at least 2013, a New York Fed survey showed https://t.co/ycq3JRhKIe
Three-Year Inflation Expectations Lowest On Record-NY Fed https://t.co/6ztSVBE5tj https://t.co/Mg66HCqAnt
🔴 NY FED: JANUARY EXPECTED FOOD RISE LOWEST SINCE MARCH 2020, RENT SINCE DECEMBER 2020.