Consumers expect inflation will fall over the next three years, according to the latest survey of consumer expectations from the Federal Reserve Bank of New York. Americans anticipate inflation will fall by 0.6% to 2.3% in 2027— the lowest level since the bank began its survey in 2013.

What You Need To Know

  • Americans anticipate inflation will fall by 0.6% to 2.3% in 2027, according to the latest survey of consumer expectations from the Federal Reserve Bank of New York

  • That's the lowest expected inflation level since 2013, when the bank first began conducting the survey

  • Consumer expectations about inflation one year from now were uncharged from June to July, holding steady at 3%

  • In June, the U.S. Bureau of Labor Statistics said annual inflation had cooled to 3%, down from 3.3% in May and the lowest level since early 2021

Their expectations about inflation one year from now were unchanged from June to July, holding steady at 3%.

In June, the U.S. Bureau of Labor Statistics said annual inflation had cooled to 3%, down from 3.3% in May and the lowest level since early 2021.

More Americans, however, are expecting to default on their minimum debt payments in the next three months, according to the survey. About 13.3% of respondents said they expect to default on at least one debt payment — the highest level since April 2020.

The average American household is carrying $104,215 in debt, about 70% of which is mortgage debt. Still, credit card debt in the U.S. hit a record high of $1.142 trillion at the end of the second quarter, according to the Federal Reserve Bank‚ the highest level since the Fed starting collecting that data in 1999.

According to Transunion, the average credit card balance per consumer in the first quarter of 2024 was $6,218.