The June survey reports that inflation expectations fell slightly at the one-year horizon but increased noticeably at the three-year horizon, largely reversing the 0.4 percentage point drop in the prior month. Consumers’ outlook on the labor market and for their financial situation generally improved. Spending growth expectations rose sharply, while expected access to credit and expected ability to make minimum debt payments improved. The median expected change in gasoline prices dropped to its lowest level since January 2016.
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Press Release: Medium-Term Inflation Expectations Rebound, Labor Market and Spending Growth Expectations Strengthen