Americans’ inflation expectations remain elevated: 1-year inflation expectations rose +0.1 percentage points in July, to 3.1%, per the NY Fed. Meanwhile, 5-year inflation expectations increased +0.3 percentage points, to 2.9%, the highest since February 2025. Gas and food inflation expectations now stand at +3.9% and +5.5%, well above the Fed's 2% CPI target. Medical care, college, and rent inflation expectations also remain elevated, at 9.2%, 8.7%, and 7.0%, respectively. Inflation remains a top concern for Americans.(The Kobeissi Letter)