04:09 PM EDT, 07/08/2024 (MT Newswires) -- US consumers' inflation expectations at the short- and longer-term horizons declined last month while their perception of housing price growth over the next year eased, the Federal Reserve Bank of New York said Monday.

Median one- and five-year inflation expectations declined by 0.2 percentage point each from May to 3% and 2.8%, respectively, according to the regional Fed's Survey of Consumer Expectations. Inflation views at the three-year horizon increased by 0.1 percentage point to 2.9% in June.

Year-ahead price change expectations decreased for all goods in the survey, the NY Fed reported. Home price growth expectations dropped to 3% from 3.3% month over month while rent growth views declined by 2.6 percentage points to 6.5% in June.

Official data are likely to show Thursday that consumer inflation in the US rose 0.1% sequentially and 3.1% annually last month, according to a Bloomberg-compiled consensus.

The Federal Reserve's monetary-policy committee is expected to meet at the end of July. Markets widely expect the Federal Open Market Committee to keep its policy rate unchanged at 5.25% to 5.50%, according to the CME FedWatch Tool.

The mean probability of losing one's job in the next 12 months rose by 2.4 points to 14.8% while the probability of finding a job advanced by 1.2 points to 53.4% -- the highest value since January, according to the NY Fed's survey. On Friday, government data showed the US economy added a more-than-expected 206,000 jobs in June while the unemployment rate edged up 0.1 percentage point sequentially to 4.1%.

Earnings growth expectations for the year ahead edged up 0.3 percentage point to 3%, the highest level since September 2023 and above its 12-month trailing average of 2.8%, according to the NY Fed's survey. The median expected growth in household income declined by 0.1 percentage point to 3% in June, while the household spending growth outlook pushed up 0.1 point to 5.1%.

Perceptions about households' current financial situations deteriorated, the regional Fed said. The expectation that US stock prices will be higher 12 months from now fell by 1.3 points to 39.2%.