fierce3penn| New York Fed: U.S. consumer inflation expectations rise to five-month high, house prices are expected to rise at a nearly two-year high

AprilFierce3pennU. S. consumers' expectations of inflation and house prices are risingFierce3pennAt the same time, there is a weakening view of the labour market, which highlights the uneasy background of household finances and the cost of living.

According to a survey by the New York Federal Reserve, consumers expect prices to hover around 3% in the past four months and 3% in the coming year.Fierce3pennThe annual growth rate of .3% rose, the highest level since November. House prices are expected to rise at a similar rate, the fastest since July 2022.

Earlier, a series of reports showed that inflation remained high and house prices continued to rise. The April CPI data, to be released this week, are widely expected to continue to rise at a strong pace, with housing as a driver of inflation.

The New York Fed survey reflects the results of a recent survey of consumers by the University of Michigan, which showed that full-year inflation expectations rose to a six-month high in early May. The long-term inflation outlook for both surveys also rose.

Many Fed officials say they would like to see more evidence that inflation is sustainably moving towards the central bank's 2 per cent target before cutting interest rates. Futures markets show that investors expect the Fed to cut interest rates once or twice by the end of the year.

In addition, the New York Fed survey shows that consumers expect prices for gasoline, food, health care, college education and rents to accelerate.

At the same time, perceptions of the labour market have deteriorated, income growth expectations have declined, and the likelihood of higher unemployment has increased. Respondents also lacked confidence in their ability to find a new job after losing their existing job, a figure that fell to its lowest level in three years.

This has had an impact on family finances. The proportion of consumers who are expected to fail to pay their minimum debt in the next three months is at its highest level since the outbreak.