A report released Friday by the New York Federal Reserve indicates that U.S. consumers' inflation expectations for July remained largely unchanged from the previous month, though households reported a slight improvement in their assessment of current and future financial conditions.

According to the New York Fed's latest Survey of Consumer Expectations, respondents anticipate a 3.6% inflation rate over the next year, a modest decline from June's 3.7%. Their expectations for inflation three and five years ahead remained steady at 3.3% and 3.0%, respectively.

Consumer inflation outlooks continue to be shaped by persistently high price pressures and the volatile swings in energy costs linked to the evolving conflict in the Middle East.

Currently, actual U.S. inflation remains significantly above the Federal Reserve's 2% target. Fed officials are actively debating whether additional interest rate increases are necessary to bring inflation back to its goal.

On the labor market front, consumers anticipate a rise in the unemployment rate and an increased risk of job loss. However, compared to June, respondents felt that the chances of finding a new job if they were to lose their current one had improved.

The report showed that in July, consumers once again expect gasoline prices to continue rising over the next year, while their expectations for home price appreciation over the same period stayed unchanged at 3.2%.

At the same time, U.S. households reported a more favorable assessment of both their current and future financial situations compared to June. Respondents noted that it has become somewhat more difficult to obtain credit currently, but they anticipate easier access to credit in the future.