Inflation is expected to remain sticky and higher than what the Federal Reserve expects.
According to the Federal Reserve Bank of New York’s Survey of Consumer Expectations, the one-year-ahead inflation is expected to be at 4.4 percent, down slightly from the 4.7 percent print in the March report.
The three- and five-year-ahead expectations jumped to 2.9 percent and 2.6 percent, respectively.
Here is what consumers expect to pay over the next year:
- Gasoline: +5.1%
- Food: +5.8%
- Medical care: +9.3%
- College education: +7.8%
- Rent: +9.2%
- Gold: +4.8%
During his post-FOMC policy meeting press conference, Fed Chair Jerome Powell noted that inflation had become “well-anchored,” which is bad news for the Fed and the broader economy. If people expect inflation to be elevated, they will be less inclined to borrow and spend.
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