Consumers see inflation easing, but worry tariffs could hike prices again, Fed survey shows.

Consumers are optimistic about easing inflation, according to a Federal Reserve Bank of New York survey. One-year inflation expectations dropped to 3.2%, a 0.4% decrease, while household income growth expectations only rose slightly to 2.7%, suggesting that income gains may still lag behind price increases. Despite the optimism, the potential for future price hikes due to tariff volatility could undermine this relief.