U.S. Consumers Expect Rise in Inflation

Inflation expectations by consumers in the United States rose last month, with more optimism about the labor market, as shown by a recent survey by the Federal Reserve Bank of New York.

The New York Fed’s report showed on Monday that consumers’ short and medium-term inflation expectations reached their highest level in about seven years in March, after rising for five consecutive month.

The median expectations for inflation over the coming year and the next three years leveled up to 3.2% and 3.1%, respectively.

In addition, expectations for consumers spending on housing, rent, and gas reached their highest level on record, since 2013.

As for the unemployment rate, consumers expecting it to rise declined to 34.4%, the lowest level since the beginning of the Coronavirus pandemic.