US consumers' short-term inflation expectations down in June

​​​​​​​By Mucahithan Avcioglu

ISTANBUL (AA) - Consumers' short-term inflation expectations in the US fell 0.2 percentage points to 3% in June, according to the results of a consumer survey published Tuesday by the Federal Reserve's New York Branch.

The median inflation expectation covering the next three years remained at 3% and the median inflation expectation covering the next five years remained at 2.6%.

Uncertainties regarding short- and medium-term inflation fell, while uncertainties about long-term inflation remained unchanged.

"Year-ahead expectations about households’ financial situations improved, with a larger share of households expecting a better financial situation and a smaller share of households expecting a worse financial situation in one year from now," according to a statement from the Fed New York.

Expectations for a rise in household incomes rose 0.2 percentage points to 2.9%, while those for expenditures fell 0.2 percentage points to 4.8%.

The expectation for a climb in costs rose to 4.2% for gasoline and 9.1% for college education and rent.

The increased expectation for the cost of health care services also hit its highest since June 2023 at 9.3%.

The inflation expectation for food costs remained unchanged at 5.5%.

The US consumer price index (CPI) rose 0.1% on a monthly basis and 2.4% on an annual basis in May, below expectations.