The Federal Reserve Bank of New York's monthly Survey of Consumer Expectations showed on Tuesday that the US consumers' one-year inflation expectation declined to a new 12-month low of 5.4%, down from 5.7% in August's survey, as reported by Reuters.

The three-year-ahead inflation expectation edged higher to 2.9% from 2.8% and the five-year-ahead inflation expectation rose to 2.2% from 2%, the publication further revealed.

On a concerning note, households' year-ahead expected spending increase declined to 6% from 7.8% in August, marking the biggest drop in the series' history.

Market reaction

The US Dollar Index edged lower with the initial reaction to this report and was last seen losing 0.15% on the day at 113.00.