US consumers expect inflation near 3.5% next year amid rising fuel and housing costs

A recent Fed survey of American households shows that respondents expect inflation to ease to about 3.5% over the coming year, a modest drop from the 3.6% peak recorded in April. They also forecast a 5% increase in fuel prices and a 3.5% rise in housing costs within the same period.

The same poll reveals growing pessimism about personal finances: only 22.9% anticipate an improvement in their financial situation over the next 12 months, while 36% expect it to worsen. Perceived risk of job loss has climbed to 15.1%, the highest in six months, and the chance of finding a new job within three months after a layoff has fallen to 43.7%, the lowest in five months. These outlooks come as inflation‑driven price pressures remain elevated, with consumer‑price growth rising from 2.4% at the start of the year to 3.8% by April.