NEW YORK— U.S. consumers grew more concerned about inflation and the labor market in September, according to new data from the Federal Reserve Bank of New York’s Survey of Consumer Expectations.
The survey found that median inflation expectations rose to 3.4% for the year ahead, up from 3.2% in August, and to 3.0% at the five-year horizon, while holding steady at 3.0% for the three-year outlook. The rise was most pronounced among lower-income households and those with at most a high school education.
Meanwhile, labor-market sentiment weakened. Median expectations for wage growth fell to 2.4%—the lowest since April 2021—and consumers grew more pessimistic about job stability. The average perceived probability that the U.S. unemployment rate will be higher a year from now climbed to 41.1%, while the probability of losing one’s own job over the next year increased to 14.9%, above its 12-month average of 14.1%, the data show.
The findings suggest Americans are bracing for persistent inflation pressures and softer job prospects as the year draws to a close, the Fed noted.