US consumers expect inflation to fall sharply as gas prices continue to drop, Fed survey says

US consumers expect inflation to fall sharply, survey shows

'Both a warning and a threat': Economics professor decodes Fed chair's commentsReplayMore Videos ... (15 Videos)'Both a warning and a threat': Economics professor decodes Fed chair's commentsFed chair lays out the 'unfortunate costs of reducing inflation'Biden's student loan forgiveness plan: Who it helps, who it doesn'tMiddle class Black Americans react to economy under BidenEngineer says she 'quiet quit' her job. Hear what that meansFed official on recession talk: When we look at the data, I feel relievedInflation is cooling but prices are still painfully high'It didn't get worse': Romans breaks down key inflation dataOnline shopping prices are starting to ease. Here's why that's significantHere's how the Inflation Reduction Act could affect you'Jaw-dropping number:' Ex Obama economic adviser on the jobs reportJuly jobs report doubles expectationsWhat is a recession?'I don't want to go bankrupt': High inflation leaves little room for unexpected costsFood bank demand skyrockets as cash-strapped Americans seek help over inflationMinneapolis (CNN Business)Americans are expecting inflation to fall sharply in both the short and long run, according to new data from the Federal Reserve Bank of New York.

In August, the median expectations for one- and three-year inflation dropped to 5.7% and 2.8% respectively, down from 6.2% and 3.2% in July, according to the NY Fed's Survey of Consumer Expectations for August, released on Monday morning. The decline comes amid a continued slump in gas prices. The national average cost for a gallon of gas has dropped to $3.71, down significantly from its June peak of more than $5.The survey — which measures consumers' expectations for overall inflation as well as prices for food, gas, housing and education — is one of three key inflation-related gauges to be released this week. It will be followed by the Consumer Price Index on Tuesday and the Producer Price Index on Wednesday. The central bank will be reviewing this and other data closely as it weighs the extent of another rate hike at its monetary policymaking meeting on September 20 and 21 in its battle to bring down historic inflation.Read MoreThis story is developing and will be updated.

Click Here To Get Funded!