Expectations for U.S. household income growth saw its largest decline in January, even as short-term inflation is expected to remain elevated, the latest data from the Federal Reserve Bank of New York’s Survey of Consumer Expectations shows.
“After increasing each month since September of last year, the median expected growth in household income dropped by 1.3 percentage point to 3.3 percent. This is the largest one-month drop in the nearly 10-year history of the series,” according to a press release on Feb. 13. “January’s decrease was more pronounced among respondents with no more than a high school education, respondents older than 60, and those with annual household incomes below $50,000.”
