Gen Z and millennials are particularly concerned about inflation
of ConsumerAffairs
Consumers who are trying to balance inflation with their plans for the future are in something of a quandary. Can they ever count on inflation easing?
More and more Americans have their doubts. The Federal Reserve Bank of New York did a deep dive into the latest consumer sentiment data and found that most consumers expect inflation to be a problem in both the short and long-term future.
The survey found that median inflation expectations among consumers increased to 3.3% from 3.0% at the one-year horizon. For the 36-month horizon, it decreased to 2.8% from 2.9%. But for the five-year horizon, it increased to 2.8% from 2.6%.
Inflation expectations have a lot to do with home buying plans, especially among younger consumers. The survey found the expectation for home price growth reached the highest level since July 2022, which just so happened to be when inflation peaked at 9%.
Worries about homelessness
Another study, done for Acorns, found that both Gen Z and millennials are not only concerned about their financial security, they even fear they could be homeless in the future. The study showed that 29% of Gen Z and 32% of millennials have this worry.
According to the Acorns study, only 35% of Americans think they will be more financially secure next year than they are now, a historically low percentage.
Inflation expectations can influence buying decisions. In the case of housing, it could cause some consumers to give up on the idea of a home purchase. However, it could cause some to accelerate the purchase of smaller items before their price rises even more.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-05-14 11:00:41
