New york: The short-term inflation expectations of US consumers decreased to 3.1%, as revealed by a survey from the Federal Reserve Bank of New York released on Monday.

According to Anadolu Agency, this marked a 0.3 percentage point drop from the previous month. The survey indicated that the three-year-ahead and five-year-ahead inflation expectations remained steady at 3% from last month.

Labor market expectations showed moderate improvements, with consumers predicting higher earnings growth, a reduced likelihood of job loss, and an increased probability of securing new employment if job loss occurred. The median expectation for earnings growth increased by 0.2 percentage points to 2.7% in January.

Household income growth expectations decreased by 0.1 percentage points to 2.9% in January, while spending growth expectations remained constant at 4.9%. Price hike expectations fell to 2.8% for gasoline, 9.8% for healthcare, and 6.8% for rent. Food price expectations stayed the same at 5.7%, while expectations for university education costs rose to 9%.

The US Consumer Price Index (CPI) saw a 0.3% increase on a monthly basis and a 2.7% rise on an annual basis in December last year, maintaining stability from the previous month.