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Americans' inflation fears decline for first time in over a year, New York Fed survey shows
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Americans' inflation fears declined for the first time in over a year in January, although concerns over rising prices remained near a record-high level, according to a key Federal Reserve Bank of New York survey published Monday.
The median expectation is that the inflation rate will be up 5.8% one year from now, down from an 11-year high of 6%, according to the New York Federal Reserve's Survey of Consumer Expectations. It marked the first time since October 2020 that consumers' short-term inflation expectations fell. Inflation expectations over the next three years also dropped to 3.5%, down from 4% last month.
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"The decline in medium-term inflation expectations was broad-based across age, education and income groups and is the largest one-month decline in the measure since the inception of the survey in 2013," the survey said. "Both measures of inflation expectations, however, remain elevated compared to their pre-COVID-19 reading."