New York Fed released today a fresh report of inflation and growth which shows that the median inflation expectations remained unchanged at the medium-term horizon and increased at the short-term horizon. Uncertainty and disagreement about future inflation increased at both the short- and medium-term horizons to new series highs. Today's data indicates that fewer US citizens believe Fed Chair Powell assurances that inflation is a transitional phenomenon.
Below we present highlights of the report:
- Median one year head inflation expectations increase by 0.4% to 5.7% in October. That is a new record high for the survey launched in June 2013
- Median three year ahead inflation expectations remained unchanged at 4.2% in October
- Median expected year ahead household income growth increased to 3.3% in October from 3% in September and reached a new series high
- Median year ahead household spending growth expectations increase by 0.4% to 5.4% reaching a new series high
Median one year head inflation expectations jumped to a new all-time high. Source: New York Fed Survey of Consumer Expectations
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