**NY Fed Survey Shows Decline in Inflation Expectations**
U.S. households’ inflation expectations have declined from the previous month, according to the latest Survey of Consumer Expectations released by the New York Federal Reserve on Tuesday.
The survey revealed that median inflation expectations dropped by 0.2 percentage points to 3.0% for the one-year-ahead forecast. Expectations remained unchanged at 3.0% and 2.6% for the three-year and five-year outlooks, respectively.
In addition to declining inflation sentiment, households are feeling more optimistic about their financial futures. Expectations for personal financial situations improved in June, with a greater share of respondents anticipating better conditions and fewer expecting deterioration a year from now. The survey also found a decrease in the number of respondents who expect credit access to become more difficult over the next 12 months.
The mean perceived probability of losing one’s job in the next year dropped by 0.8 percentage points to 14.0%—the lowest level in six months. This decline in job loss fears was observed across all age and education groups.
These findings indicate growing consumer confidence in both economic conditions and their personal financial outlooks.
