In April, American consumers' expectations of inflation and housing prices rose while their views on the labor market weakened, highlighting the uncertain background of household finances and living costs.
The Zhitong Finance App learned that in April, American consumers' expectations for inflation and housing prices rose, while their views on the labor market weakened. This highlights the uncertain background of household finances and living costs.
According to a survey by the New York Federal Reserve, consumers expect prices to rise at an annual rate of 3.3% in the next year after hovering around 3% in the past four months, which is the highest level since November last year. Housing prices are also expected to rise at a similar rate, the fastest increase since July 2022.
Earlier, a series of reports showed that inflation remained high and housing prices continued to rise. The market generally anticipates that the April CPI data to be released this week will continue to rise at a strong rate. Among them, housing has always been a factor driving the rise in inflation indicators.
The New York Federal Reserve's survey reflects the results of a recent survey of consumers by the University of Michigan. The survey showed that full-year inflation expectations in early May rose to a six-month high. The long-term inflation outlook for both surveys has also increased.
Many Federal Reserve officials said they would like to see more evidence that inflation is sustainably moving towards the central bank's 2% target before cutting interest rates. The futures market shows that investors expect the Federal Reserve to cut interest rates once or twice before the end of this year.
Additionally, the New York Federal Reserve's survey also shows that consumers expect the prices of gasoline, food, healthcare, college education, and rent to rise faster.
At the same time, perceptions of the labor market have worsened, expectations of income growth have declined, and the possibility of higher unemployment is rising. Respondents also lacked confidence in their ability to find a new job after losing their current job, and this number fell to its lowest level in three years.
This has had an impact on the family's finances. The proportion of consumers who are unable to pay their minimum debt within the next three months is expected to reach its highest level since the outbreak began.