Americans See Inflation Plunging Next Year, New York Fed Survey Finds

Respondents to the widely considered survey expect inflation to run at 6.2% in 2023, which is down 0.6% from last month’s survey.

AccessTimeIconAug 8, 2022 at 8:29 p.m. UTC
Updated May 11, 2023 at 6:17 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Consumers see inflation falling sharply next year, the latest New York Federal Reserve Survey of Consumer Expectations found.

Respondents saw inflation running at 6.2% in 2023, down from June expectations that it would run at a 6.8% rate, according to the report, which was released Monday.

It's the largest one-month drop since the New York Fed first conducted the survey in 2013 and reflects the latest hopes that inflation could soon be under control.

Over the next three years, survey participants expect inflation to decrease to 3.2%, largely because of tumbling gas prices, which respondents see increasing by only 1.5% over the next year. Over a five-year period, Americans see inflation running at 2.3%, which would be slightly above the Fed’s target, or neutral rate, of 2%.

Crypto and other investors widely expect the Fed to raise the interest rate aggressively in September as part of an ongoing campaign to tame inflation, which has surged this year. Consumer assumptions typically move in tandem with inflation, which explains why the Fed monitors the survey closely.

Many analysts expect the July consumer price index (CPI), which the U.S. Commerce Department releases on Wednesday, to show a slowdown in inflation to 8.7%, according to a forecast by FactSet. Inflation jumped unexpectedly to 9.1% in June, its highest level in four decades.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Helene Braun

Helene is a New York-based reporter covering Wall Street, the rise of the spot bitcoin ETFs and crypto exchanges. She is also the co-host of CoinDesk's Markets Daily show. Helene is a graduate of New York University's business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.