It seems that Americans are starting to get used to inflationary pressure. A survey by the Federal Reserve Bank of New York says that average inflation expectations stay at 3%. However, the situation is not that rosy. The three-year forecasts were upwardly revised to 2.9%, while the five-year forecasts were downgraded to 2.6%. Although the figures seem to be stable, US citizens still have to save money.
Thus, US households, who are already tired of perpetually high interest rates and ballooning inflation, are now juggling their debts. In this light, the forecast for defaulting on the minimum debt commitments over the next three months is as high as 12.9%. Some people have decided that ignoring bills is the new way to deal with the issue.
People in the age group from 40 to 60 years are especially anxious. Such people have big debts and sluggish income growth.
However, in March, consumer prices jumped once again. The rise was registered in the prices of gasoline, food, medical care, education, and rents. In an attempt to maintain patience, US residents continue to monitor changes in the economy, hoping to come across an encouraging piece of information.
