{"id":248625,"date":"2025-07-08T18:08:18","date_gmt":"2025-07-08T18:08:18","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/248625\/"},"modified":"2025-07-08T18:08:18","modified_gmt":"2025-07-08T18:08:18","slug":"inflation-expectations-drift-back-down-to-pre-tariff-levels-new-york-fed-survey-shows","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/248625\/","title":{"rendered":"Inflation expectations drift back down to pre-tariff levels, New York Fed survey shows"},"content":{"rendered":"

People shop at a grocery store in Brooklyn on May 13, 2025 in New York City. <\/p>\n

Spencer Platt | Getty Images<\/p>\n

Fears earlier this year that President Donald Trump<\/a>‘s tariffs would result in a sharp inflation spike have completely receded, according to a New York Federal Reserve survey released Tuesday.<\/p>\n

The central bank’s monthly Survey of Consumer Expectations shows that respondents in June saw inflation at 3% 12 months from now. That’s the same level it was in January \u2014 before Trump took office and began saber-rattling over trade.<\/p>\n

The level marked a 0.2 percentage point decline from May and a retreat from the 3.6% peak hit in March and April.<\/p>\n

Since April, Trump has gone from slapping across-the-board 10% tariffs plus a menu of so-called reciprocal duties against U.S. trading partner to a more conciliatory approach involving ongoing negotiations.<\/p>\n

Thus far, tariffs have yet to show up in most inflation readings. The consumer price index rose just 0.1% in May<\/a>, according to the Bureau of Labor Statistics, though the annual inflation rate of 2.4% remains above the Fed’s 2% goal.<\/p>\n

Inflation expectations at the three- and five-year horizons were unchanged at 3% and 2.6% respectively, according to the survey.<\/p>\n

While the headline inflation outlook eased, respondents still expect higher prices in several key individual categories. The survey pointed to expectations for a 4.2% increase in gas prices, 9.3% for medical care \u2014 the highest since June 2023 \u2014 and 9.1% for both college education and rent. The outlook for food price increases was unchanged at 5.5%.<\/p>\n

Employment metrics also showed some improvement, with a 1.1 percentage decrease in the expectation for a higher unemployment rate a year from now. Also, the average expectation for losing one’s job fell to 14%, a 0.8 percentage point drop and the lowest reading since December.<\/p>\n

Don\u2019t miss these insights from CNBC PRO<\/p>\n","protected":false},"excerpt":{"rendered":"People shop at a grocery store in Brooklyn on May 13, 2025 in New York City. Spencer Platt…\n","protected":false},"author":2,"featured_media":248626,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[1500,5464,51,3085,3686,32,1700,476,16,15],"class_list":{"0":"post-248625","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-breaking-news","9":"tag-breaking-news-economy","10":"tag-business","11":"tag-business-news","12":"tag-donald-j-trump","13":"tag-donald-trump","14":"tag-economy","15":"tag-inflation","16":"tag-uk","17":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114818954269388770","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/248625","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=248625"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/248625\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/248626"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=248625"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=248625"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=248625"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}