Americans are expecting lower inflation increases over the longer run, amid a sharp drop in the projected rate of home-price increases, the Federal Reserve Bank of New York said in a report Monday.
The bank said in its June Survey of Consumer Expectations that three years from now, respondents see inflation at a 3.6% rise, down from a 3.9% increase in May. The bank also said five years from now, the expected rate of inflation is seen at a 2.8% gain, from the prior month’s projected 2.9% rise.
