Americans’ overall views on inflation were little changed in August, even as they predicted rising price increases for things like rent, homes and food, while downgrading their views of their personal financial situations, the New York Fed reported Monday, Reuters reported. The bank said in its Consumer Sentiment Survey for August that respondents see inflation a year from now at 3.6%, up from July’s 3.5%, while they project inflation three years from now to hit 2.8% versus 2.9% in July. Five years from now respondents see inflation at 3% from July’s 2.9%. The relative stability of inflation expectations last month came as the survey found respondents predicted accelerating price increases for a range of key categories. In August, the survey found expected price gains for gasoline, food, rent, medical costs and college. Respondents also predicted that house prices would rise 3.1%, the highest reading since July 2022. At the same time, survey respondents were more downbeat about access to credit and their current and future financial positions. They predicted future household income would rise by 2.9% in August, the weakest reading since July 2021, from July’s 3.2%.
