Consumers have lower economic expectations for the coming year but generally don't intend to spend less during the 2025 holiday season, the Federal Reserve Bank of New York reported on Tuesday. Photo by Cristobal Herrera-Ulashkevich/EPA-EFE
Oct. 7 (UPI) -- Rising food costs, combined with economic uncertainty, dampen consumers' expectations for the coming year, the Federal Reserve Bank of New York's latest consumer survey says.
Food costs rose by 2.7% in August compared to a year earlier, which has contributed to lowering consumers' expectations regarding having a better year financially in 2025, the N.Y. Fed reported on Tuesday.
"Few things drive Americans' perception of the economy more than grocery prices," Lending Tree credit analyst Matt Schulz told CNBC.
"If people are convinced that those are just going to keep rising, it stands to reason that fewer people would think their own household's financial situation would be better off a year from now," Schulz added.
