U.S. Household Financial Worries Hit 13.3% Post-2022 High as Iran War Fuels Inflation Fears
Updated
Updated · CNBC · Jun 8
U.S. Household Financial Worries Hit 13.3% Post-2022 High as Iran War Fuels Inflation Fears
3 articles · Updated · CNBC · Jun 8
Summary
13.3% of U.S. households said their finances were "much worse" than a year earlier in May, up 2.7 points from April and the highest since July 2022, the New York Fed said.
43.7% saw their situation as somewhat or much worse, while 36% expected conditions to worsen over the next year and only 22.9% expected improvement.
Inflation expectations barely moved despite Iran war-driven energy fears: one-year expectations edged up to 3.5%, while three- and five-year views held at 3.1% and 3.0%.
Price details were mixed, with expected gasoline inflation slipping to 5.0%, food rising to 5.8%, rent jumping to 7.4%, and expected household spending growth easing to 5.0%.
The survey lands before Wednesday's May CPI report, where economists expect 4.2% headline inflation, and ahead of the Fed's June 17 decision, with markets pricing almost no chance of a rate cut.