NY Fed: Medium-term inflation expectations rebound

"Results from the June 2017 Survey of Consumer Expectations show that inflation expectations fell slightly at the one-year horizon but increased noticeably at the three-year horizon, reversing to a large extent the 0.4 percentage point drop in the prior month," said the Federal Reserve Bank of New York.

Key quotes:

• Consumers’ outlook of the labor market and financial situation generally improved
• Median inflation expectations decreased slightly at the one-year horizon from 2.6% in May to 2.5% in June and rebounded noticeably from 2.5% in May to 2.8% in June at the three-year ahead horizon
• Median one-year ahead expected earnings growth expectations rebounded from 2.2% in May to 2.5%, remaining between the 2.0-2.5% band observed since late-2015
• The mean perceived probability of losing one’s job in the next 12 months declined slightly from 13.6% in May to 13.5%
• Median expected household income growth was unchanged from the previous month at 2.7%