New York Fed Reports Continued Decline in Inflationary Pressure
The latest data from the New York Fed show a continued decrease in inflationary pressure. The one-year inflation expectation dropped to 3.02% from 3.17% in May, marking the second consecutive monthly decline. This supports the Federal Reserve's path toward interest rate cuts.
The five-year inflation expectation fell by 0.2 percentage points to 2.8%, while the three-year expectation rose by 0.1 percentage points to 2.9%. Food and energy inflation both decreased by 0.5 percentage points, now at 4.8% and 4.3%, respectively. Healthcare expenses dropped significantly by 1.7 percentage points, from 7.4% to 5.7%. Rent inflation also fell by 2.6 percentage points, from 6.5% to 3.9%.