NY Fed: Inflation expectations rise; labor market expectations improve

"The New York Fed’s Center for Microeconomic Data today released the December 2017 Survey of Consumer Expectations, which shows an increase in short- and medium-term inflation expectations. Expectations about income and spending growth decreased, but expectations about household financial situations and credit availability improved," the Federal Reserve Bank of New York announced on Tuesday. 

Key quotes

Median inflation expectations at the three-year horizon increased from 2.8% in November to 2.9% in December, while at the one-year horizon they rose from 2.6% to 2.8%. 

The median one-year-ahead expected gasoline price change decreased from 4.3% in November to 4.1% in December.

Median one-year-ahead earnings growth expectations continued to increase, from 2.6% in November to 2.7% in December, a level last reached in November 2014. 

Mean unemployment expectations dipped 0.2 percentage points to 33.5% in December, the lowest level since December 2014.

Median expected household income growth decreased 0.2 percentage points in December, to 2.8%, but remained in line with the trailing 12-month average of 2.7%.