03:48 PM EST, 11/12/2024 (MT Newswires) -- US consumers' inflation expectations cooled in October while labor market concerns eased, the Federal Reserve Bank of New York said Tuesday.

The median one-year inflation outlook declined by 0.1 percentage point sequentially to 2.9%, while expectations fell by 0.2 point to 2.5% at the three-year horizon. Five years out, the price gauge fell by 0.1 point to 2.8%, according to the regional Fed's Survey of Consumer Expectations.

The year-ahead outlook dipped for gas, food, cost of college and rent. The expected cost of medical care declined by 0.8 percentage point to the lowest level since January 2020.

Last week, the Federal Reserve lowered interest rates by 25 basis points following a 50-basis-point cut in September.

The market predicts data from the Bureau of Labor Statistics will show Wednesday that annual consumer inflation rose to 2.6% in October from 2.4% in September, according to a Bloomberg-compiled consensus.

Median home price growth projections were unchanged at 3% in October, according to the New York Fed survey.

Median year-ahead earnings growth expectations held steady at 2.8% last month while unemployment expectations fell by 1.7 percentage points to 34.5%, the lowest reading since February 2022.

The perceived probability of losing a job in the next 12 months slipped while the chances of finding one increased 3.3 percentage points to its highest reading since October 2023.

Median growth outlooks for household income and spending were unchanged. The average perceived probability of missing a minimum debt payment over the next three months dipped by 0.3 of a percentage point in its first decline since May, the New York Fed survey showed.