US' median inflation expectations drop across all horizons

The survey also highlighted an increase in disagreement among respondents regarding short-term inflation expectations, while disagreement decreased for the three-year and five-year horizons. Despite these shifts, median inflation uncertainty remained largely unchanged across all horizons.

The labour market section of the survey revealed some critical insights. The median expected earnings growth for the coming year decreased to 2.5 per cent, the lowest since April 2021, primarily influenced by respondents with a high school diploma or less. Meanwhile, mean unemployment expectations decreased to 37 per cent, staying below the 12-month average of 39.5 per cent.

The perceived probability of job loss in the next 12 months experienced a slight decrease to 13.4 per cent, yet remained above the average of 12.3 per cent. Conversely, the likelihood of voluntarily leaving a job in the next 12 months rose to 20.4 per cent. Optimistically, the perceived probability of finding a job in the event of job loss marginally increased to 55.9 per cent from 55.2 per cent in November.

ALCHEMPro News Desk (DP)