The New York Federal Reserve’s monthly Survey of Consumer Expectations found that consumers think inflation will go down, CNBC reported Monday.
In June, consumers thought inflation would increase by a median of 6.8% over the next year. But, in July, that went down: The survey group thought inflation would increase by a median of 6.2% over the next year.
“Expectations about year-ahead price increases for gas and food fell sharply,” the Fed wrote.
Food prices will likely overall increase more in 2022 than they did in 2020 and 2021, the USDA added.
Consumers in July also forecasted a lower median for three-year inflation compared to June, from 3.6% to 3.2%.