AI Data Insight
The 75th percentile of US 1-year inflation expectations for May 2026 (Q2) fell sharply to 6.0% from 6.49% in the previous month, indicating that extreme inflation fears are subsiding. Meanwhile, a New York Fed survey noted that median inflation expectations also dipped slightly to 3.5%, though consumer concerns regarding the labor market and credit conditions are intensifying. This data provides a positive signal for the Federal Reserve but also implies that the pressure of high interest rates on the real economy is gradually emerging.