03:26 PM EST, 02/10/2025 (MT Newswires) -- US consumers' long-term inflation expectations rose in January, while the year-ahead unemployment outlook reached a multiyear low, the Federal Reserve Bank of New York said Monday.

Median five-year inflation projections grew by 0.3 percentage point to 3% last month, according to the regional Fed's Survey of Consumer Expectations. The one- and three-year inflation views were unchanged at 3% each, though year-ahead commodity price expectations increased across the board, led by gas and food, the Fed branch said.

Government data are expected to show Wednesday that US consumer inflation rose 0.3% sequentially and 2.9% annually in January, according to a Bloomberg-compiled consensus. In December, the US consumer price index increased 0.4% month on month and 2.9% on an annual basis.

Mean unemployment expectations one year from now dropped by 0.6 percentage point to 34% in January, which the New York Fed said was the measure's lowest reading since July 2021.

Median household spending growth projections fell by 0.4 percentage point to 4.4%, its lowest print since January 2021, while the income component rose by 0.2 percentage point to 3%, according to the survey.

On Friday, a survey by the University of Michigan showed that consumer sentiment in February reached its lowest level since last July, while year-ahead inflation expectations hit the highest since November 2023. The survey indicated concerns regarding the Trump administration's tariff policy.

Late last month, the Federal Reserve kept interest rates unchanged following three straight cuts and said inflation remained "somewhat elevated." Markets widely expect the central bank's Federal Open Market Committee to again hold rates steady next month, according to the CME FedWatch tool.

The New York Fed survey showed gains in median one-year earnings growth expectations, as well as in the mean perceived probabilities of losing and leaving one's job. The probability of finding a new job in the next three months advanced by 1.3 percentage points to 51.5%, according to the survey.

On Friday, government data showed that the US economy added fewer jobs than expected in January, while the unemployment rate unexpectedly moved down.