Respondents to the New York Fed survey indicated they expect the annual inflation rate to be 5.7% a year from now.
to battle inflation that is still running close to a more than 40-year high. The central bank is widely expected to approve a third consecutive 0.75 percentage point increase when it meets again next week.While consumers expect inflation pressures to ease somewhat, they still think the cost of living will escalate.
Median expectations for household spending over the next year rose 1 percentage point to 7.8% in August, an increase in outlook driven largely by those holding a high school education or less and a group largely composed of lower earners. Moreover, respondents said credit is harder to come by now. Those reporting that it's more difficult now to get credit rose to a series high, with 57.8% reporting that it's either harder or much harder, the New York Fed reported.
Also, those expecting to miss a minimum debt payment over the next three months rose 12.2%, a 1.4 percentage point gain that was the highest reading since May 2020. The Bureau of Labor Statistics on Tuesday will release the August consumer price index reading. Economists surveyed by Dow Jones expect CPI to have risen 8% from a year ago, though they see a decline of 0.1% from July. Excluding food and energy, core CPI is projected to rise 6% year over year and 0.3% month over month.