ANKARA (AA) – American consumers’ inflation expectations fell to the lowest level since October last year, according to a survey released by the Federal Reserve Bank of New York on Monday.

The median one-year-ahead inflation expectation dropped 0.5 percentage points to 5.7% in August, from 6.2% in July, the survey showed.

The three-year-ahead inflation expectations fell 0.4 percentage points from 3.2% to 2.8% – its lowest level in almost two years.

“Consumers were more optimistic about their future household income and financial situations,” the survey said.

“Expectations about year-ahead price increases for gas also continued to decline, with households now expecting gas prices to be roughly unchanged a year from now. Home price growth expectations fell sharply, and expectations of future credit access deteriorated,” it added.

While expectations about year-ahead price changes fell by 1.4 percentage points for gas to 0.1%), they fell 0.8 percentage point for food to 5.8%, and 0.3 percentage point for rent to 9.6%, according to the survey.

Consumer inflation in the US rose 9.1% annually in June, the largest 12-month increase since November 1981. In the following month, consumer inflation gain slightly eased to an annual gain of 8.5% in July, but still hovering hear 40-year high.