US consumers' inflation view weakest since late 2017

[NEW YORK] US consumers' inflation expectations deteriorated to their weakest levels since late 2017 in May, while their views on jobs and family finances grew less certain, according to a Federal Reserve Bank of New York survey published on Monday.

The weakening in inflation expectations may factor into Fed policy-makers' decision whether to lower interest rates in the coming months to help boost U.S. price growth towards the central bank's 2 per cent goal.

The survey of consumer expectations, which the Fed considers along with other data on US price pressures, showed consumers' one-year inflation outlook losing 0.1 percentage point to 2.5 per cent last month.

The survey's three-year inflation measure also fell by 0.1 point to 2.6 per cent.

The New York Fed survey is done by a third party that taps a rotating panel of about 1,300 household heads.

REUTERS