A report from the New York Federal Reserve found that the US public's expectations for short-term inflation remained largely stable in January and expects future spending to ease significantly. The survey showed that expectations for inflation levels in both one and three years remained unchanged at 3% last month, while expectations for inflation levels in five years rose to 3% from 2.7% in December. In January, the public also predicted bigger future increases in food, gasoline, rent, college and healthcare costs, while expectations for home prices rose to 3.2% from 3.1% in December. The change in consumer expectations for future household spending fell to 4.4% from 4.8% in December, the lowest level since January 2021. But the report notes that the reading is still higher than it was before the COVID-19 pandemic.