The US economy sees further disinflationary movements. Following the data of the New York Fed, US consumer inflation expectations have fallen for the 2nd month in a row, reaching 3% in June 2024, down from 3.2% in May. This decline reflects a widespread reduction in anticipated price increases across various sectors.
Notably, consumers foresee smaller price hikes in:
Gas: down 0.5 points to 4.3%
Food: down 0.5 points to 4.8%
Medical care: down 1.7 points to 7.4%
Rent: down 2.6 points to 6.5%
College education: down 3.1 points to 5.3%, the lowest since December 2020
Home prices: down 2.6 points to 3%
Additionally, five-year inflation expectations dropped slightly to 2.8%, while the three-year forecast inched up to 2.9%. If this week's inflation data is also favorable, the central bank is likely to come under further pressure to make money cheaper again and close the widening gap with the European Central Bank to some extent.