Short-term inflation expectations unchanged in April for US consumers

​​​​​​​By Sevgi Ceren Gokkoyun

Short-term inflation expectations for consumers in the US remained unchanged at 3.6% in April, according to a report Thursday by the Federal Reserve New York branch.

The results of the Survey of Consumer Expectations for April 2025 said the median inflation expectation, covering the next three years, increased 0.2 points to 3.2% to its highest since July 2022.

The median inflation expectation for the next five years, on the other hand, fell from 2.9% to 2.7%.

Uncertainties on short-, medium- and long-term inflation increased, while labor market expectations deteriorated.

Expectations for income growth also fell.

The average unemployment expectation rose 0.1 percentage points to 44.1% -- the highest recorded since April 2020.

The expectation for an increase in household incomes fell 0.2 points to 2.6% to its lowest since April 2021.

The expectation for an increase in costs fell to 5.1% for food, while it rose to 3.5% for gasoline, 8.7% for health services, 9% for rent and 9.1% for university education.

US inflation fell 0.1% on a monthly basis in March, but increased 2.4% on an annual basis, below expectations.

Inflation data for April will be released May 13.