Federal Reserve: U.S. consumer inflation expectations stable in November, financial conditions deteriorate

According to the consumer expectations survey by the Federal Reserve Bank of New York, consumers' expectations for inflation over the next year remained stable at 3.2% in November, compared to 3.24% the previous month. The report states: "The reading for expected changes in healthcare costs reached the highest level since the series began in January 2014."

"The average expectation for the likelihood of unemployment over the next 12 months decreased by 0.2 percentage points to 13.8%, the lowest since December 2024."

"People's views on their current financial situation compared to a year ago have significantly worsened, with a higher proportion of respondents indicating that their household finances are worse than a year ago."

For the next year, consumers expect gasoline prices to rise by 4.09%; food prices to rise by 5.87%; medical expenses to rise by 10.08%; college education costs to rise by 8.39%; and rent to rise by 8.27%.

The proportion of consumers who expect to be unable to make the minimum payment in the next three months has increased, rising from 13.1% in October to 13.7%