New York Fed Survey: November inflation expectations remain stable, but American households are more pessimistic about their financial situation

ME News: On December 9 (UTC+8), a report released by the New York Fed on Monday showed that although US households’ expectations for future inflation remained stable, their views on current and future financial conditions became more pessimistic in November. The regional Fed noted in the survey that respondents’ perceptions of their current financial situation “deteriorated significantly,” while their outlook for one year ahead “deteriorated slightly.” However, respondents’ views on the job market improved in November. The report stated that expectations for a rise in the unemployment rate over the next year have weakened, and the likelihood of becoming unemployed within the next year has fallen to its lowest level since December 2024. Households also lowered the probability of voluntarily leaving their jobs. In addition, the New York Fed report showed that inflation expectations in November were generally moderate. The inflation expectation for the next year remained at 3.2%, consistent with the previous month; three-year and five-year inflation expectations both remained at 3%. November’s home price expectations also stayed stable, with an expected increase of 3%, and there was little change in outlooks for a range of commodity prices. However, one-year expectations for medical costs rose by 10.1%, the highest since January 2014. The report also noted that compared with the previous month, expectations for future income and wage growth remained positive in November. (Source: ME)