U.S. consumer expectations for future inflation edged higher in November after falling to a record low in the previous month, the Federal Reserve Bank of New York reported ahead of the central bank's last monetary policy meeting for 2019.
The median three-year-ahead expected inflation rose 0.1 percentage point to 2.5% last month, while the one-year-ahead expected inflation rate ticked up 0.02 percentage point to 2.4%.
In October, consumer expectations for both short- and medium-term inflation hit their lowest levels since June 2013, when the New York Fed survey began.
The median expected household income growth rose to 2.9% in November from 2.8% in October, while the median one-year-ahead expected earnings growth fell 0.1 percentage point to 2.2%, below the 12-month trailing average of 2.4%.
"One-year ahead expectations, as well as perceptions about households' financial situations, improved in November, with higher shares of respondents expecting to be better off financially in the future and reporting to be better off than a year ago," the New York Fed said.
The mean perceived probability of losing one's job in the next 12 months dropped to 14.4% in November from 14.8% in October, while the mean perceived probability of finding employment rose to 59.3% from 58.8%.
A better-than-expected November jobs report tempered fears of a looming recession and snuffed out any expectations of another interest rate cut by the Fed at its meetings on Dec. 10 and 11.