Americans are feeling better about inflation, according to the latest Federal Reserve Survey of Consumer Expectations.
In October, consumers expected inflation to decline by 0.1% to 2.9% one year out. Within three years, they expect inflation to fall to 2.5%.
Consumers expect prices to decline by at least 0.2% for gas, food, college education, rent and medical care by October 2025. They expect their household incomes to grow by about 3% over the same time frame and for their household spending to increase 4.9%.
Fewer people expect to miss their minimum debt payments in the next three months, marking the first decrease since May. People under the age of 40 were most likely to report a decrease in the likelihood they would miss a minimum payment.
More Americans also expect the labor market to improve, with fewer survey respondents expecting increased unemployment or to lose their jobs. People under the age of 40 and with a college degree were most likely to report a decrease in the likelihood they would lose their job in the next 12 months. Unemployment expectations fell to their lowest level since February 2022.
The Federal Reserve survey is based on responses from a nationally representative, Internet-based sample of 1,300 heads of household.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
