Consumer expectations for inflation fell for the first time since October 2020, according to the New York Fed’s January Survey of Consumer Expectations…(NYFED)
- Median one-year inflation expectations fell to 5.8% from 6.0% in December. This is the first decline since October 2020.
- Median three-year expectations saw a decline to 3.5% from 4.0% in December.
NOTE: Both levels remain well above their pre-pandemic levels.
With the housing market heating up so are expectations for housing prices…
- Median year-ahead home price change expectations increase to 6.0% from 5.5% in December.
- Expectations are now one percentage point higher in just two months.
Earnings were mostly unchanged for the month…
- Median one-year ahead expected earnings growth was unchanged at 3.0%, but remains above the 2021 average of 2.6%.
- The median expected growth in household income fell 0.1 percentage points to 3.3%, but remains above the 2021 average of 2.9%.