Short-Term Inflation Expectations Increase, Labor Market Expectations Deteriorate.

The Federal Reserve Bank of New York’s Center for Microeconomic Data today released the March 2025 Survey of Consumer Expectations, which shows that households’ inflation expectations increased at the short-term horizon, remained unchanged at the medium-term horizon, and ticked down at the longer-term horizon. Unemployment, job loss, and earnings growth expectations deteriorated. Household income growth expectations declined. Households were also more pessimistic about their year-ahead financial situations and credit access. Stock price expectations declined and reached the lowest level since June 2022.