US Consumer Inflation Expectations Pick Up to 3-Month High

US consumer inflation expectations for the year ahead rose to 3.2% in August 2025, the highest in three months, from 3.1% in July. Median year-ahead expected change declined for the cost of college education (by 0.9 percentage point to 7.8%), for rent (by 1.0 percentage point to 6.0%), and for the cost of medical care (by 0.4 percentage point to 8.8%). Median year-ahead price change expectations remained unchanged for gas (3.9%) and food (5.5%) for the third consecutive month. Meanwhile, inflation expectations for the three-year and five-year horizons were unchanged at 3% and 2.9%, respectively.