Americans’ worries over inflation tempered in May, according to a New York Federal Reserve survey released Monday, signaling rising consumer optimism following shifts in US President Donald Trump’s tariff policy.
The one-year inflation outlook dipped from 3.6% to 3.2%, with survey respondents expecting lower monthly price increases in medical care, education, and rent, although respondents expect food prices to rise by 5.5% in the next 12 months — the largest monthly increase since 2023; canned food could see significant price changes because of remaining duties on tin-coated steel, producers told The Wall Street Journal.
Survey respondents’ anxiety over unemployment also declined, but a separate measure of employment trends from the Conference Board dipped slightly, reflecting lingering economic uncertainty.
