Global Finance News
07 Aug 2026, 15:38
US One-Year Inflation Expectations Ease to 3.6% in July
U.S. consumers' near-term inflation expectations declined slightly in July, adding to signs that inflation concerns are gradually moderating.
The New York Fed's one-year consumer inflation expectation fell to 3.6% from 3.7% previously.
The decline is modest but potentially supportive for the Federal Reserve, particularly alongside Friday's much weaker-than-expected employment report. July nonfarm payrolls fell by 23,000, while average hourly earnings increased just 0.1% month-over-month.
Together, softer wage growth, weaker employment and slightly lower consumer inflation expectations reduce pressure on the Fed to consider additional monetary tightening.
The data also support Friday's positive reaction in U.S. equities, particularly rate-sensitive technology stocks, as investors increasingly focus on the possibility that monetary policy can remain accommodative without a renewed acceleration in inflation expectations.
U.S. consumers' near-term inflation expectations declined slightly in July, adding to signs that inflation concerns are gradually moderating.
The New York Fed's one-year consumer inflation expectation fell to 3.6% from 3.7% previously.
The decline is modest but potentially supportive for the Federal Reserve, particularly alongside Friday's much weaker-than-expected employment report. July nonfarm payrolls fell by 23,000, while average hourly earnings increased just 0.1% month-over-month.
Together, softer wage growth, weaker employment and slightly lower consumer inflation expectations reduce pressure on the Fed to consider additional monetary tightening.
The data also support Friday's positive reaction in U.S. equities, particularly rate-sensitive technology stocks, as investors increasingly focus on the possibility that monetary policy can remain accommodative without a renewed acceleration in inflation expectations.
