Sept 13 (Reuters) – U.S. consumers’ expectations for how much inflation will change over the next year and the coming three years rose last month to the highest levels since 2013, according to a survey released on Monday by the New York Federal Reserve.
Year-ahead inflation expectations increased for the 10th straight month to a median of 5.2% in August, according to the monthly survey of consumer expectations. Inflation expectations over the next three years increased to a median of 4.0%. Both metrics are at the highest they’ve ever been for the survey, which was launched in 2013.
U.S. central bank officials are keeping a close watch on inflation expectations as they try to evaluate whether the pricing pressures triggered by the coronavirus pandemic will pass or have more lasting effects on the economy.
Some policymakers say ending the massive asset purchases the Fed launched last year to support markets and the economy sooner rather than later will give officials more options for responding down the road if inflation lasts longer than anticipated.
Several policymakers said they expect the Fed to begin winding those asset purchases down later this year despite a weakening in jobs growth in August.
The New York Fed survey showed that consumers are raising their expectations for how much more they may have to spend on housing, food and other essentials over the next year.
Expectations for how much home prices will increase over the next year dropped again in August for the third straight month, but were still elevated at a median of 5.9%, the survey found.
Food prices are expected to grow by 7.9% over the next year, up from 7.1% in July. Rent is expected to increase by 10% over the next 12 months and the price of medical care is expected to rise by 9.7% over the next year – both up 0.2 percentage point from July.
The report is based on a rotating panel of 1,300 households.
Our Standards: The Thomson Reuters Trust Principles.
- Consumers should soon see benefit of Fed’s patience on rates
- US Inflation Reaches 2.9 Percent in June, Highest in 6 Years
- Economy Week: Fed to Cut Rates Again, But What Comes After That?
- Britons feel the squeeze as inflation rises to four-year high of 2.9%
- US Consumer Spending Weak in May, While Inflation Speeds Up
- Fed Is Set to Keep Rates on Hold Before a Hike Later in Year
- Fed chair signals gradual rate hikes
- Weak Pay Growth Puzzles Fed Chief, Just Like Everyone Else
- Weak pay growth puzzles Fed chief
- Amid Mounting Evidence of Toxic Mine Exposures, Feds Did Nothing
- Marketing Day: March 12, 2013
- Fed projects further gradual hikes in key rate
- JON REES: From the poor to the rich, to the political parties, who pays the biggest price for inflation?
- JPMorgan Weighs Shifting Thousands of Jobs Out of NY Area
- Feds Pressure E-cigarette Firms for 'Epidemic of Addiction' Among Teens
- 2020 Hyundai Sonata Confirmed for NY Debut
- 70% of consumers will leave a review for a business when asked
- Review: 2013 Chevrolet Volt (Video)
- US inflation reaches 2.9% in June, highest in 6 years
- US consumer spending up 0.4% in July
U.S. consumers' inflation expectations highest since 2013, NY Fed says have 501 words, post on www.reuters.com at September 13, 2021. This is cached page on Europe Breaking News. If you want remove this page, please contact us.