US one-year inflation expectations drop to 3%

Consumer inflation expectations in the US for the upcoming 12 months have decreased for a second straight month in June, to 3% from 3.2% in May, the latest data by the Federal Reserve Bank of New York showed.

US consumers now expect a lesser increase in prices for:

– gas – down 0.5 percentage point to 4.3%;
– food – down 0.5 percentage point to 4.8%;
– medical care – down 1.7 percentage points to 7.4%;
– rent – down 2.6 percentage points to 6.5%;
– college education – down 3.1 percentage points to 5.3%, or the lowest level since December 2020;
– home – down 2.6 percentage points to 3%.

In the meantime, consumer inflation expectations for the upcoming 5-year period also decreased, to 2.8% in June from 3% in May.

And, the median three-year inflation expectations rose to 2.9% in June from 2.8% in May.

The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was inching down 0.02% to 104.994 on Tuesday.