US inflation expectations fall in November: New York Fed survey

By Ovunc Kutlu

ISTANBUL (AA) - US inflation expectations declined in November, according to a survey released Monday by the Federal Reserve Bank of New York.

"Median inflation expectations decreased at both the one- and three-year-ahead horizons in November, by 0.7 percentage point to 5.2% and by 0.1 percentage point to 3.0%, respectively," it said in a statement.

Median five-year-ahead inflation expectations also decreased by 0.1 percentage points to 2.3%.

The median expected growth in household income, on the other hand, increased by 0.2 percentage point to 4.5% in November, which is an all-time high in the series, said the Fed's New York branch.

The median household spending growth expectations decreased slightly to 6.9% from 7.0% in October, it added.

The New York Fed's Survey of Consumer Expectations contains information about how consumers expect overall inflation and prices for food, gas, housing, and education to behave.

Consumer inflation in November will be announced on Tuesday, which is expected to show an annual gain of 7.3% year-on-year, according to market estimates. Annual consumer inflation rose 7.7% in October.

The data could impact the Fed's interest rate decision, which will be announced after the central bank's two-day meeting concluding Wednesday.

The Fed has raised its benchmark interest rate by a total of 375 basis points, or 3.75%, since March to lower the record inflation.