Consumer Inflation Expectations Jump to 8-Year High: NY Fed

Inflation expectations among American consumers rose to an eight-year high in August, according to a new survey from the New York Federal Reserve. Both the short-term and medium-term inflation expectations in August rose to their highest levels in the history of the series, which dates back to 2013, according to the Sept. 13 survey. Consumers’ expectations for what inflation will be at the one-year horizon increased from a median 4.9 percent in July to 5.2 percent in August. Americans aged 60 and over reported the highest anticipated rise in prices over the short term, with a median prediction of inflation of 6.0 percent, while the under-40s reported the lowest, at 4.5 percent. Broken down by income, people who earn between $50,000 and $100,000 reported the highest one-year ahead median expected inflation rate of 5.5 percent, while those earning over $100,000 reported the lowest, at 4.9 percent. Consumers’ expectations for what inflation will …

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