New York Fed Consumer Survey: Short-term inflation expectations decline, deteriorating views on financial conditions.

According to the consumer expectations survey from the New York Fed, consumers' expectations for the future one-year inflation rate in January dropped to 3.09%, down from 3.42% the previous month. According to the report: the median of inflation uncertainty decreased over a one-year and three-year horizon, but increased over a five-year horizon. Respondents' perceptions of their current financial situation worsened, with an increased proportion believing that their family's situation had deteriorated compared to a year ago. For the next year, consumers expect gasoline prices to rise by 2.8%, food prices to rise by 5.74%, medical costs to rise by 9.8%, college education costs to rise by 9.03%, and rental prices to rise by 6.82%.