Consumers fear price increases aren’t abating anytime soon. <\/p>\n
Median inflation expectations for the year ahead rose in June to 3.7%,\u00a0 according to the New York Fed’s June survey of consumer expectations. That’s the highest since September 2023, when the economy was recovering from a brutal surge in prices the previous year.\u00a0 <\/p>\n
Expectations for inflation over the next three years also climbed to 3.3%, the most since June 2022, when inflation peaked at a 40-year high of 9.1%<\/a>. <\/p>\n As for where they see those price increases hitting, consumers anticipate big swings coming for healthcare and rent, with medical costs surging 9.4% and rent growing 8.3% in the next year. They were most sanguine about gas costs: Consumers’ price change expectations for fuel dipped to the lowest level since August 2022. Respondents also felt smaller price hikes were ahead for food and college education.\u00a0 <\/p>\n While the average rental price in the US is currently tracking below last year’s levels when looking across all property types, reaching $2,014 as of July 5, according to Zillow<\/a>, some markets are seeing strain. Average rents<\/a> are up compared to a year ago in Chicago<\/a>, for example. <\/p>\n Read more:\u00a0How to protect your savings against inflation<\/a> <\/p>\n The price hike story is clearer in healthcare. After pandemic-era enhanced premium tax credits expired at the end of last year, premiums and deductibles were expected to surge<\/a>, contributing to millions of people dropping coverage<\/a>. <\/p>\n Amid this price squeeze, workers’ pay is currently not keeping pace with inflation<\/a>. But consumers in the New York Fed’s survey did anticipate pay raises in the year ahead: Their median earnings growth expectations rose to 2.8% in June, the highest since March 2025. Unemployment expectations also decreased. <\/p>\n Emma Ockerman<\/a> is a reporter covering the economy and labor for Yahoo Finance. You can reach her at emma.ockerman@yahooinc.com<\/a>. <\/p>\n Sign up for the Mind Your Money newsletter<\/strong><\/a> <\/p>\n