Inflation Expectations Continue Decline at the Short-, Medium-, and Long-Term Horizons
Median one- and three-year-ahead inflation expectations both posted steep declines in August, from 6.2 percent and 3.2 percent in July to 5.7 percent and 2.8 percent, respectively. Median five-year-ahead inflation expectations, which have been elicited in the monthly SCE core survey on an ad-hoc basis since the beginning of this year and were first published in July, also declined to 2.0 percent from 2.3 percent. Expectations about year-ahead price increases for gas also continued to decline, with households now expecting gas prices to be roughly unchanged a year from now.
Note: The newly released series for median five-year-ahead inflation expectations is now included as the last tab in the “Chart Data” Excel file provided under the downloads drop-down menu.
For more details: Press Release:
Inflation and Home Price Expectations Decline Further