US inflation expectations fall to lowest level since February: New York Fed

ANKARA

American consumers' inflation expectations fell to the lowest level since February, according to a survey released by the Federal Reserve Bank of New York on Monday.

The median one-year-ahead inflation expectation dropped 0.6 percentage points to 6.2% in July, from 6.8% in June, the survey showed.

The three-year-ahead inflation expectations fell 0.4 percentage points from 3.6% to 3.2% – its lowest level since April.

"Expectations about year-ahead price increases for gas and food fell sharply," the survey said.

While expectations about year-ahead gas price changes dropped off sharply, down 4.2 percentage points to 1.5%, expectations for food declined 2.5 percentage points to 6.7%.

Also on a positive note, the median expected growth in household income rose 0.2 percentage points to 3.4% in July, a new series high level in the survey that includes around 1,300 households.

Consumer inflation in the US rose 9.1% annually in June, the largest 12-month increase since November 1981.