The path U.S. consumers expect inflation to take over the next year softened in November to the lowest level in more than two years, amid retreating projections of higher gasoline and rental costs, a New York Federal Reserve survey showed. Consumers expect inflation to be at 3.4% a year from now, down from an expectation of 3.6% in October and the lowest reading since April 2021, the regional Fed bank said in its latest Survey of Consumer Expectations. The rise in fuel costs is seen at 4.5% a year from now, down from the expected 5% in October, while rent was seen at 8%, a drop from an expected increase of 9.1% in October. The year-ahead expected rise in rent was the lowest since January 2021.
The report said inflation at the three- and five-year horizons was steady at 3.0% and 2.7%, respectively.
