03:19 PM EDT, 10/15/2024 (MT Newswires) -- US consumers' inflation expectations increased at the medium- and long-term horizons in September, the Federal Reserve Bank of New York said Tuesday.

The median three-year inflation outlook rose sequentially to 2.7% last month from 2.5%, while the five-year metric advanced to 2.9% from 2.8%, according to the regional Fed's Survey of Consumer Expectations.

The one-year outlook remained unchanged at 3%, with price expectations staying flat for the cost of college. The outlook rose for food, but dropped for gas, cost of medical care, and rent.

Last week, data from the Bureau of Labor Statistics showed that US consumer inflation increased at a more-than-expected pace in September on both sequential and annual bases.

Median home price growth projections fell by 0.1 percentage point to 3% last month, the New York Fed survey showed.

The year-ahead earnings growth outlook dropped by 0.1 percentage point to 2.8%, while the mean probability that the US unemployment rate will be higher one year from now decreased by 1.5 percentage points to 36.2%. The mean perceived probability of losing one's job was unchanged at 13.3%, while the odds of leaving one's job voluntarily rose to 20.4% from 19.1%, according to the survey.

Median growth outlooks for household income and spending decreased by 0.1 percentage point each to 3% and 4.9%, respectively. The average perceived probability of missing a minimum debt payment over the next three months rose to the highest reading since April 2020, the New York Fed survey showed.

Last month, the central bank's monetary policy committee lowered its benchmark lending rate by 50 basis points. The odds of policymakers reducing interest rates by 25 basis points next month rose to 98% Tuesday from about 84% Monday, according to the CME FedWatch tool.