New York Fed's survey of consumers found expectations for
inflation one and three years in the future fell as Americans
were more cognizant of lower gasoline prices and costs of
medical care and college.
One-year median expectations have fallen three months running
and hit 2.42 percent in January, from 2.54 percent in December.
The three-year ahead prediction was 2.45 percent last month,
well down from 2.78 percent the previous month.
Respondents on the younger and older ends of the range, and
those with lower education and income, drove the decline, said
the New York Fed, whose survey has been increasingly cited by
economists and central bankers themselves as a read on when
inflation will return to a 2-percent target.
The Fed raised rates in December and aims to keep tightening.
But a market selloff in January and worries over a global
slowdown has some Fed officials worried that inflation, at 1.4
percent now according to their preferred measure, will not
rebound as soon as desired.
The internet-based survey taps a rotating panel of 1,200
household heads, and is done by an outside organization.
(Reporting by Jonathan Spicer; Editing by Andrea Ricci)
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