US consumers’ economic outlook eased further in August, as inflation and home price growth expectations declined, an improvement that is still unlikely to lead the US central bank to loosen monetary policy at its next meeting.
Consumers’ inflation expectations over the next 12 months fell to 5.7 per cent in August from 6.2 per cent in July, while the three-year inflation expectation measure fell to 2.8 per cent from 3.2 per cent, according to the Federal Reserve Bank of New York’s survey of consumer expectations.
“Perceptions about households’ current financial situations compared to a year ago improved, with fewer households reporting a worse situation compared to a year,” the bank’s economists said.
The improving outlook comes ahead of Tuesday’s release of the closely watched consumer price index for August, which is expected to report a second consecutive monthly decline in the annual rate of inflation.
But the recent…
