New York Fed Survey: US July Consumer Inflation Expectations Rise, Views on Job Market Improve

date
10/08/2025
A monthly survey by the Federal Reserve Bank of New York showed that in July, US consumer inflation expectations rose and views on the job market also improved. The New York Fed said on Thursday that expectations for inflation over the next year increased slightly from 3% in June to 3.1%. Expectations for inflation over the next three years remained at 3%, while expectations for inflation over the next five years rose to 2.9%, the highest level since February. The increase in inflation expectations will reinforce the position of Federal Reserve officials who are hoping to temporarily keep interest rates unchanged. They have kept rates unchanged this year, but more and more investors are betting that the Federal Reserve will cut rates at the next policy meeting in September. In the New York Fed survey, more households reported that obtaining credit had become more difficult, and the proportion of those who believed they might not be able to make the minimum payment in the next three months also increased slightly. However, the proportion of households who believed their financial situation would improve in the next year continued to increase for the second consecutive month, while the proportion of respondents who said their situation was worse than a year ago decreased to the lowest level since January 2022.