Inflation Expectations Fall But Most Americans Say They Are Worse Off Than A Year Ago
The median one-year expectation for inflation fell to 6.2 percent, down from 6.8 percent in June.
Median five-year ahead inflation expectations also declined to 2.3 percent from 2.8 percent in June.The share of households who say they expected to be “much rose off” a year from now dipped to 9.5 percent from last month’s record high 13.6 percent.
The share expecting to be much better off, however, fell to 2.9 percent.
On average in data going back to 2013, 5.3 percent expected to be much better off.
The share saying they are somewhat worse off dipped to 35.5 percent from 36.1 percent.
The median expected change in home prices one year from now fell sharply to 3.5 percent from 4.4 percent.
This ticked down to 11.8 percent from 11.9 percent, remaining well-below the prepandemic reading of 13.8 percent and its long term average of 14.4 percent.