Consumers expect lower inflation over the next year than they did a month ago, the New York Federal Reserve found in its latest survey. Over the next 12 months, consumers expect prices to rise 3.2%, down by 0.

Consumers’ expectations for future price pressures improved across all horizons in May, and households’ pessimism about the labor market somewhat eased, according to monthly survey data released Monday by the Federal Reserve Bank of New York.

The report found that survey respondents are expecting moderating price gains for gas, rent, medical care and college, while food costs a year from now are seen rising at a 5.5% rate, the highest mark since October 2023. Meanwhile, in May the year- ahead expected rise in house prices stood at 3%, down from April’s 3.3%.