The survey findings expect inflation rates to be at 6.2% in 2023.
New York Federal Reserve Survey of Consumer Expectations released on Monday found that consumers consider 2023 inflation rates to be around 6.2%, down by 0.6% from the June expectations. This one-month drop is the largest since the Fed started surveying in 2013.
Respondents also expect the inflation rates to go down to 3.2% during the next three years, owing to declining gas prices. Over the next five years, the inflation rates are expected to go down to 2.3%, marginally above the Fed’s target rate of 2%. Interest rates are expected to go up again in September. The July CPI index showed an inflation rate of 8.7%.