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NY Fed: Year-ahead expected inflation drops to 4.2% in Febuary from 5% in January

The Federal Reserve Bank of New York's monthly Survey of Consumer Expectations showed on Monday that the US consumers' one-year inflation expectation dropped to the lowest level since May 2021 at 4.2% in February, compared to 5% in January.

Further details of the publication showed that the three-year ahead expected inflation remained unchanged at 2.7% and the five-year ahead expected inflation edged higher to 2.6% from 2.5%.

Finally, the year-ahead expected earnings growth held steady at 3%.

Market reaction

The US Dollar stays on the back foot after this report and the US Dollar Index was last seen losing 1% on the day at 103.60.

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