Inflation Expectations Hold at 3.0% in January

Consumer inflation expectations held for the second straight month to start 2024, according to the Federal Reserve Bank of New York’s Survey of Consumer Expectations.

  • Median inflation expectations remained unchanged at 3.0% for the one-year ahead horizon in January, holding at the lowest level since December 2020.
  • Economists hit the nail on the head projecting expectations to hold at 3.0%.

4-Year Low. Median inflation expectations at the three-year ahead horizon declined to 2.4% in January, down from 2.6% in December and the lowest level since September 2019.

Home Price Growth. Median home price growth expectations were unchanged at 3.0% in January, holding at 3.0% for the fourth conservatives month but well above last year’s expectations of 1.1%.

Credit Access. Perceptions of credit access compared to a year ago improved notably with a decreased share of respondents reporting that it is more difficult to obtain credit now than a year ago, and a larger share reporting that it is now easier to do so.