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US Inflation Expectations Dropped in August, New York Fed Says

  • New York Fed releases August survey of consumer expectations
  • Expectations for higher home prices also ease, survey finds
A customer shops at a grocery store in Salt Lake City, Utah.

A customer shops at a grocery store in Salt Lake City, Utah.

Photographer: George Frey/Bloomberg

Consumer expectations for US inflation over the coming years declined sharply in the latest survey by the Federal Reserve Bank of New York, providing policy makers with good news as they battle to curb price pressures.

Expectations for US inflation three years ahead fell to 2.8% in August, from 3.2% the previous month and 3.6% in June, according to the New York Fed’s monthly Survey of Consumer Expectations released Monday. The outlook for inflation one year ahead declined to 5.7% from 6.2% in July. On a five-year horizon, consumers now expect 2% inflation, versus 2.3%.