US inflation expectations break new high

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