The New York Federal Reserve’s Survey of Consumer Expectations showed that inflation expectations remained steady in June, with respondents predicting prices to rise by 3% over the next year. This is consistent with January levels and a decrease from May’s 3.6%. The easing of headline inflation outlook comes as President Trump’s tariffs have become more conciliatory.
However, individual categories saw significant increases in expected price hikes. Gas prices are forecasted to rise 4.2%, medical care by 9.3%, college education by 9.1%, and rent also by 9.1%. Food prices remain steady at 5.5%.
Employment metrics also improved, with the expectation for higher unemployment rates decreasing by 1.1 percentage points and the risk of job loss falling to 14% – its lowest level since December.
Source: https://www.cnbc.com/2025/07/08/inflation-expectations-drift-back-down-to-pre-tariff-levels-new-york-fed-survey-shows.html