MNI BRIEF: Inflation Expectations Edge Higher - NY Fed Survey

The New York Fed's median measures of consumer inflation expectations at the one-year and five-year-ahead horizons ticked higher in September, according to the bank's monthly survey. Labor market expectations also continued to deteriorate. 

One-year-ahead inflation expectations increased two tenths to 3.38%, the three-year measure edged up 5 basis points to 3.05%, and the five-year-ahead increased 4 basis points to 2.97%. Expected home prices growth was unchanged at 3.0% for the fourth straight month, while rent expectations increased a percentage point to 7.0%, the survey said. 

Median nominal household spending growth expectations declined by 0.3 percentage point to 4.7%, falling below the trailing 12-month average of 4.9%. The mean probability that the U.S. unemployment rate will be higher one year from now increased 2.0 percentage points to 41.1%. The survey was fielded from September 1 through September 30.